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Thread: Gift Tax

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    Veteran Member SaraNLA's Avatar
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    Default Gift Tax

    If the money isn't classified as a loan, then the next logical way to look at it is as a gift. If that is the case then you don't have to claim it as income. However, if the amount is over a certain threshold ($10, 000 per year ? - Monty ?) then your father may have to pay gift tax on that money. Seeing as how that money is in a joint account, the gift scenario would probably only apply to any money that you have withdrawn/written checks on, and not the entire balance.
    Monty & Melonie - I'm confused! You mean the person who gave you money (and was originally taxed on the money) has to pay another tax on it -- a gift tax (if over $10,000 in a year)? What they gave you the money in cash -- say $1,500 or so a month?


    Let your indulgence set me free. - Shakespeare

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    Member shinychar's Avatar
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    Default Re:Gift Tax

    Good question Sara. That was what I was wondering too.

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    Member shinychar's Avatar
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    Default Re:Gift Tax

    See Monty's response to this in my other post regarding borrowed money.

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    Default Re:Gift Tax

    Monty & Melonie - I'm confused! You mean the person who gave you money (and was originally taxed on the money) has to pay another tax on it -- a gift tax (if over $10,000 in a year)? What they gave you the money in cash -- say $1,500 or so a month?
    Yup, any person who gives a gift in excess of $11,000 per year (thanks Monty) to a single recipient must pay a very steep gift tax to the IRS. In the case of someone giving $1,500 a month = $18,000 per year, I would guess that the person giving the money would also be stuck paying somewhere around and additional $3,500 in gift tax annually. Also the gift itself is NOT tax deductible.

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