social

Paying Taxes on Gifted Money?

May 11, 2012

Gifted MoneyI'm new to paying taxes and have a question about gift money. I know gifts are not taxed for the recipient, but if one takes a gift and deposits it in a savings account for more than one tax year, will it ever be considered taxable income, or will only it's annual interest (if high enough) be so treated?

Advertisement

Thank you.

By Alessandro

Answers

May 11, 20120 found this helpful

To find your answer you can, 1. call the IRS. The number is in the phone book or find it on line. 2. Call a CPA. I don't believe they would charge a fee to answer a question. 3. Call the tax dept of your state. 4. Go to IRS.GOV and hunt around their web site for your answer.

 

Silver Feedback Medal for All Time! 337 Feedbacks
May 12, 20120 found this helpful

I am can only answer for here in Canada. Gifts are not taxable, however, if this is a large sum of money, you should retain some documentation to prove that it was a gift and not earned income. As long as you can prove it was a gift, you should be fine.

Advertisement

Perhaps the best thing for you to do is to contact your tax office. The number should be in your phone book, on tax forms, or easily found over the internet.

 
Answer this Question

More Questions

Here are the questions asked by community members. Read on to see the answers provided by the ThriftyFun community.

September 7, 2006

Are cash gifts less than $10,000 taxable?

Clint from Baltimore, MD

Answers

September 7, 20060 found this helpful

The annual exclusion is 11000 for this year, but you can find out more information below because it really depends on who it goes to and so on.....

Advertisement


PDF file from the IRS
www.irs.gov/.../p950.pdf

http://www.frugalforlife.com

 
September 19, 20060 found this helpful

It is allowable by law to give cash gifts of $11,000 per person without your paying taxes

 
Answer this Question
<< First< Previous
Categories
Budget & Finance Tax TipsJuly 15, 2013
Pages
More
🌻
Gardening
🐰
Easter Ideas!
👒
Mother's Day Ideas!
Facebook
Pinterest
YouTube
Instagram
Categories
Better LivingBudget & FinanceBusiness and LegalComputersConsumer AdviceCoronavirusCraftsEducationEntertainmentFood and RecipesHealth & BeautyHolidays and PartiesHome and GardenMake Your OwnOrganizingParentingPetsPhotosTravel and RecreationWeddings
Published by ThriftyFun.
Desktop Page | View Mobile
Disclaimer | Privacy Policy | Contact Us
Generated 2024-03-29 03:01:14 in 5 secs. ⛅️️
© 1997-2024 by Cumuli, Inc. All Rights Reserved.
https://www.thriftyfun.com/Paying-Taxes-on-Gifted-Money.html