<denaman[at]hotmail.com> wrote:

- quote -

You are confusing gift taxes and income taxes.

Gifts of any amount are not income to the recipient. So it
doesn't matter how much you receive in a year nor from whom
you receive it. You don't report the amounts received by
you as gifts on your income tax return and you don't pay
income taxes on the gifts.

There is a gift tax, which is the responsibility of the
person making the gift, not the person receiving the gift.
Each person may make gifts of up to $12,000 (increased from
$11,000) to as many different people as he or she wants each
year. There is no requirement that the recipient of the
gift is related to the donor nor is there any limit on the
number of these gifts. (There are some technical exceptions
to all this, but they aren't relevant to your question.) If
the donor makes a gift of more than $12,000 (which actually
can increase to $24,000 if the donor is married) the donor
must report the gifts in excess of $12,000/$24,000 to the
IRS but does not have to pay any gift taxes until the total
amount of such excess gifts exceeds $1 million per donor.
Hope this helps.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote:

- quote -

The recipient of the gift does not report it as it is not
taxable income no matter how large the gift. Gift tax is
paid by the person who gives the gift, should the gift be
larger than 12,000 (not 11,000) in a single year.

Ira Smilovitz

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"dena...[at]hotmail.com" <dena...[at]hotmail.com> wrote:

- quote -

The limit is now $12,000 per doner per donee. There is no
tax by the donee regardless of the size of the gift. The
donor has to file a gift tax rturn if he gifts more than
$12,000/d/d but there is no actual tax unless the large
gifts are deducted from his estate tax exemption and his
total estate exceeds the exemption mount when he dies.

ed

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denaman[at]hotmail.com <denaman[at]hotmail.com> wrote:

- quote -

The recipient doesn't pay gift taxes. Some donors do.

The limit is per person, independent of what anyone else
gives.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"dena...[at]hotmail.com" <dena...[at]hotmail.com> wrote:

- quote -

Any number of people may give you gifts, far in excess of
$12,000, and you would not be reporting those gifts on YOUR
tax return. Gifts, if they ever become taxable, are subject
to tax on the giver. Those who exceed the annual amount
allowable for making gifts must file a gift tax return.

http://www.irs.gov/publications/p950/ar02.html#d0e261

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"denaman[at]hotmail.com" <denaman[at]hotmail.com> writes:

- quote -

The *receiver* of a gift never claims it, as income or
otherwise. Bill Gates could give me $10,000,000,000 and I
wouldn't have to report it or pay a penny of tax on it.

It is the *giver* that has to report the gifts.

The giver has to report the amount in excess of *$12,000*
given to any individual in a calendar year. In other words,
the giver could give $11,000 each to five hundred different
people in a year and not have to report anything. Likewise,
if he gave $30,000 to one person, he'd have to report an
$18,000 taxable gift. If he gave $20,000 to one person and
$15,000 to another, he'd have to report $8,000 + $3,000 =
$11,000 of taxable gifts.

The $12,000 per recipient per year exemption only applies to
gifts of a present interest. Gifts of a future interest are
reportable no matter how small they are.

--
Rich Carreiro rlcarr[at]animato.info

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote
- quote -

Well, you understand wrong. You can receive any amount of
gift without having to report it as income - for cash gifts,
it'll never ~be~ income to you. Different rules apply when
you receive tangible gifts, like of stock, collectibles,
etc.

- quote -

See above.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote:

- quote -

First of all, you are talking about gift tax, not income
tax. Second, I believe the amount of the annual gift tax
exclusion is $12,000 this year.

If total gifts for the year are $12,000 or more, you need to
file a gift tax return. That doesn't necessariliy mean that
you pay any gift tax. You do reduce your estate tax
exclusion by the amount of taxable gifts.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

denaman[at]hotmail.com wrote:

- quote -

The number is $12000.
And you may give any number of people that amount with no
tax consequences. Likewise, you may receive this amount from
any number of people. (If a gift is over $12000, it's the
giver who would have a tax issue, not the recipient)

JOE

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote:

- quote -


First of all, you are talking about gift tax, not income
tax. Second, I believe the amount of the annual gift tax
exclusion is $12,000 this year.

If total gifts for the year are $12,000 or more, you need to
file a gift tax return. That doesn't necessariliy mean that
you pay any gift tax. You do reduce your estate tax
exclusion by the amount of taxable gifts.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

sethb[at]panix.com (Seth) wrote:
- quote -

And then only if the donor's estate is insufficient to pay
the tax.

Stu

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Seth <sethb[at]panix.com> wrote:
- quote -

OK, recipient never pays INCOME tax on a gift.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Herb Smith <f5a010$p6t$1[at]panix1.panix.com> wrote:

- quote -

Not quite NEVER. For instance, a very large gift (several
million $), then the donor dies insolvent without having
paid the gift tax.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote:

- quote -

The recipient of the gift does not report it as it is not
taxable income no matter how large the gift. Gift tax is
paid by the person who gives the gift, should the gift be
larger than 12,000 (not 11,000) in a single year.

Ira Smilovitz

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote:

- quote -

You are confusing gift taxes and income taxes.

Gifts of any amount are not income to the recipient. So it
doesn't matter how much you receive in a year nor from whom
you receive it. You don't report the amounts received by
you as gifts on your income tax return and you don't pay
income taxes on the gifts.

There is a gift tax, which is the responsibility of the
person making the gift, not the person receiving the gift.
Each person may make gifts of up to $12,000 (increased from
$11,000) to as many different people as he or she wants each
year. There is no requirement that the recipient of the
gift is related to the donor nor is there any limit on the
number of these gifts. (There are some technical exceptions
to all this, but they aren't relevant to your question.) If
the donor makes a gift of more than $12,000 (which actually
can increase to $24,000 if the donor is married) the donor
must report the gifts in excess of $12,000/$24,000 to the
IRS but does not have to pay any gift taxes until the total
amount of such excess gifts exceeds $1 million per donor.
Hope this helps.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"denaman[at]hotmail.com" <denaman[at]hotmail.com> writes:

- quote -

The *receiver* of a gift never claims it, as income or
otherwise. Bill Gates could give me $10,000,000,000 and I
wouldn't have to report it or pay a penny of tax on it.

It is the *giver* that has to report the gifts.

The giver has to report the amount in excess of *$12,000*
given to any individual in a calendar year. In other words,
the giver could give $11,000 each to five hundred different
people in a year and not have to report anything. Likewise,
if he gave $30,000 to one person, he'd have to report an
$18,000 taxable gift. If he gave $20,000 to one person and
$15,000 to another, he'd have to report $8,000 + $3,000 =
$11,000 of taxable gifts.

The $12,000 per recipient per year exemption only applies
to gifts of a present interest. Gifts of a future interest
are reportable no matter how small they are.

--
Rich Carreiro rlcarr[at]animato.info

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"dena...[at]hotmail.com" <dena...[at]hotmail.com> wrote:

- quote -

The limit is now $12,000 per doner per donee. There is no
tax by the donee regardless of the size of the gift. The
donor has to file a gift tax rturn if he gifts more than
$12,000/d/d but there is no actual tax unless the large
gifts are deducted from his estate tax exemption and his
total estate exceeds the exemption mount when he dies.

ed

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

denaman[at]hotmail.com <denaman[at]hotmail.com> wrote:

- quote -

The recipient doesn't pay gift taxes. Some donors do.

The limit is per person, independent of what anyone else
gives.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"dena...[at]hotmail.com" <dena...[at]hotmail.com> wrote:

- quote -

Any number of people may give you gifts, far in excess of
$12,000, and you would not be reporting those gifts on YOUR
tax return. Gifts, if they ever become taxable, are subject
to tax on the giver. Those who exceed the annual amount
allowable for making gifts must file a gift tax return.

http://www.irs.gov/publications/p950/ar02.html#d0e261

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

<denaman[at]hotmail.com> wrote

- quote -

Well, you understand wrong. You can receive any amount of
gift without having to report it as income - for cash gifts,
it'll never ~be~ income to you. Different rules apply when
you receive tangible gifts, like of stock, collectibles,
etc.

- quote -

See above.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >