OT: gift tax

[bowfront26]

I have a tax question...
If I receive a "gift" from someone, of $5000 am i obligated to declare this as income? I know that the donor doesn't have to pay the gift tax on amounts up to $12,000 for the 2006 year but what about me?
Thanks

[GinaSofia]

no taxes on up to a $10,000 gift per year from a parent is all I know :)

Gifts from non-relatives are certainly taxable.

[Bui]

<a href=showthread.php?s=&postid=9754432#post9754432 target=_blank>Originally posted</a> by bowfront26
I have a tax question...
If I receive a "gift" from someone, of $5000 am i obligated to declare this as income? I know that the donor doesn't have to pay the gift tax on amounts up to $12,000 for the 2006 year but what about me?
Thanks

each parent could give $10,000 tax free money per year. So both parents could give a combine of $20,000 to their kid(s) each year tax free.

If it isn't your parent's then you are taxed on any net profit.
net profit mean any gain you make after your expense. So if you bend over to pick up a quater,0 expense, .25 cent profit ..congratulation you just make .25 cent net profit. Now you have to report that to Uncle Sam. However, if the amounts are small, you most likely not going to get audited that why no one ever report small gift like $100.


FYI...Bank doesn't report any cash deposit you did in bank to the IRS unless it is more then $4999 in one month..then they may even ask you to fill out a form where the money come from

If you in the first tax bracket, worried about the IRS and the increase on your tax, then tell them to give you the $1500 and $3500 as a loan and tell them to consider automatically giving you $1500 every year until the amount = 0.

btw..I'm not suggesting you cheat on your taxes...

So kind of fish tank are you going to buy with that money?

[bowfront26]

are you guys sure... i just found this, which says gifts are not taxable for the receiver only to the donor if exceeding the limit (which is 12,000 this year).
http://www.fairmark.com/begin/gifts.htm

[FOSELONE]

$5000.00 gift...damn somebody really likes you...

[Super NooB]

The donor pays the gift tax. You're home free baby!

[evolution8888]

I see that in your avatar you're a student. Any monies given as a gift toward tuition can be excluded as long as you're a candidate for a degree...

[rich99rich]

The limit is $12,000 per person, per year. A gift tax return would be required only if the person giving the gift (donor) exceeds this amount. It is not taxable to the receiver (donee). So in your situation, it was a tax-free transaction.