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Don't deposit all at once, or use separate accounts.
WOW, I never thought of that....interesting.
Posted by MJDoc12
you can deposit up to $9,999 in cash at an account at a time without having to worry about the IRS being notified.
just spread the the deposits out
Don't deposit it all at once. Deposit less than $10,000 at a time and spread it out, otherwise, the bank will have to notify the IRS.
Posted by MJDoc12
you can deposit up to $9,999 in cash at an account at a time without having to worry about the IRS being notified.
just spread the the deposits out
Posted by DrWho
Don't deposit all at once, or use separate accounts.
it's just for CASH over 10k.. if you have checks, it's fine
it doesn't matter what form of money the gift takes (cash, checks, traveler cheques and/or money orders) . They are all consider cash gifts for tax purposes.
Posted by MJDoc12
you can deposit up to $9,999 in cash at an account at a time without having to worry about the IRS being notified.
just spread the the deposits out
Posted by joan_db
I am not a tax attorney (although I did take numerous tax courses in law school) and this is my recollection. (NOTE -- this is NOT legal advice...if you are concerned, consult a professional.)
Gifts are not considered income for income tax purposes. Any interest earned on cash gifts is, as usual, income and would be reported on a 1099 (I think) from your bank.
With respect to the gift tax (more accurately, a transfer tax, although it is never called that), the tax is levied against and payable by the person GIVING the gift, not the person receiving the tax.
A single person may give any person a gift of up to $10,000 a year (actually it is increased each year a bit and I believe is now up to about $11,000) free and clear of the gift tax. To the extent that the gift exceeds this exemption amount, it is subject to taxation. (What this means is that, a single person can give as many people as he wants $10,000 a year in gifts free from tax; a married couple can consequently give twice that -- $20,000 ($22,000)).
However, to make things even MORE confusing, even if a gift exceeds the exemption amount and is thus subject to tax, the gift tax need not be immediately payable. The so called 'estate tax exemption' which provides that all estates less than a certain amount (used to be $655,000, but now I am not sure), is not subject to the estate tax, is actually a 'unified exemption'. So, any gift tax that is owed throughout a persons lifetime is actually applied against the unified exemption.
Basically it all gets sorted out when the giftor die and a determination is made whether he must pay estate tax.
NOTE: This is an oversimpliification of a rather complex and constantly changing subject, and, as I say, if you are concerned, consult a tax professional.
Posted by MJDoc12
you can deposit up to $9,999 in cash at an account at a time without having to worry about the IRS being notified.
just spread the the deposits out
Posted by twinkletoes807
Posted by joan_db
I am not a tax attorney (although I did take numerous tax courses in law school) and this is my recollection. (NOTE -- this is NOT legal advice...if you are concerned, consult a professional.)
Gifts are not considered income for income tax purposes. Any interest earned on cash gifts is, as usual, income and would be reported on a 1099 (I think) from your bank.
With respect to the gift tax (more accurately, a transfer tax, although it is never called that), the tax is levied against and payable by the person GIVING the gift, not the person receiving the tax.
A single person may give any person a gift of up to $10,000 a year (actually it is increased each year a bit and I believe is now up to about $11,000) free and clear of the gift tax. To the extent that the gift exceeds this exemption amount, it is subject to taxation. (What this means is that, a single person can give as many people as he wants $10,000 a year in gifts free from tax; a married couple can consequently give twice that -- $20,000 ($22,000)).
However, to make things even MORE confusing, even if a gift exceeds the exemption amount and is thus subject to tax, the gift tax need not be immediately payable. The so called 'estate tax exemption' which provides that all estates less than a certain amount (used to be $655,000, but now I am not sure), is not subject to the estate tax, is actually a 'unified exemption'. So, any gift tax that is owed throughout a persons lifetime is actually applied against the unified exemption.
Basically it all gets sorted out when the giftor die and a determination is made whether he must pay estate tax.
NOTE: This is an oversimpliification of a rather complex and constantly changing subject, and, as I say, if you are concerned, consult a tax professional.
Actually, I am an attorney, and this information is right on. Deposit away. You will be fine!![]()
