My parents want to help me out and give me some money for wedding and down payment for a house, but I know that there is a limit on how much one can receive as a gift before it gets taxed. Does anyone know the actually protocol to this???
jmgoncal
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Re: how much $ can you get as a gift b4 its taxed..
$13,000 per donor per donee - but your parents can combine it and give you $26,000. BUT if it's for the wedding it's not a gift b/c your parents are 'hosting' the party. It's a little more complicated than that, but those are the general rules.
FutureJOC
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Re: how much $ can you get as a gift b4 its taxed..
I thought it was it was $10K, someone posted something about it last week and said it was $12K... I really am not sure but I would go with $10K just to be on the safe side
vv117
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Re: how much $ can you get as a gift b4 its taxed..
Posted by FutureJOC
I thought it was it was $10K, someone posted something about it last week and said it was $12K... I really am not sure but I would go with $10K just to be on the safe side
it's $13,000 in 2010 (or $26,000 if spouses split the gift). it changes every couple of years.
cleokizzy
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Re: how much $ can you get as a gift b4 its taxed..
you may want to check out my post regarding this, there were interesting answers on it.
Re: how much $ can you get as a gift b4 its taxed..
thank you all so much! I an so clueless when it comes to this! thanks again!
twein28
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Re: how much $ can you get as a gift b4 its taxed..
the gift giver gets $1 million lifetime exemption as well above and beyond the $13k.
little j
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Re: how much $ can you get as a gift b4 its taxed..
so if someone has to pay the tax...is it a % of the gift?? how does that work??
thanks
leesah85
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Re: how much $ can you get as a gift b4 its taxed..
I'm pretty sure it's $13K
lisagail55
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Re: how much $ can you get as a gift b4 its taxed..
When does this get taxed? Cuz I just deposited a check for >13,000 in our bank account. Also, how does anyone know if it is split between two people? It was written out to me and was from my Mom & Dad.
KerriJohnS
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Re: how much $ can you get as a gift b4 its taxed..
Posted by FutureJOC
I thought it was it was $10K, someone posted something about it last week and said it was $12K... I really am not sure but I would go with $10K just to be on the safe side
10k is the limit before it has to be reported. Just to make sure there is no funny business going on. They really start tracking at the 10k mark. with banks the 10k limit is huge... the bank secrecy act. check it out. It has to do with money laundering.
jmgoncal
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Re: how much $ can you get as a gift b4 its taxed..
Posted by KerriJohnS
Posted by FutureJOC
I thought it was it was $10K, someone posted something about it last week and said it was $12K... I really am not sure but I would go with $10K just to be on the safe side
10k is the limit before it has to be reported. Just to make sure there is no funny business going on. They really start tracking at the 10k mark. with banks the 10k limit is huge... the bank secrecy act. check it out. It has to do with money laundering.
I think you're confusing 2 unrelated things. The annual gift exemption is $13,000 - anything above a $13,000 gift is taxable to the donor (ignoring their $1 million exclusion which they may or may not want to use for estate tax purposes). The bank secrecy act requires banks to report transactions of more than $10,000 to prevent money laundering - that's completely unrelated to gift taxation.
