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FWIW, this is taxable by law. Gifts above a certain amount (I believe $10k) are taxed as normal income.
by bfstein 10y ago
FWIW, this is taxable by law. Gifts above a certain amount (I believe $10k) are taxed as normal income.
- cbr 10y agoIt's also not a gift if it's compensation for doing work.
- _audakel 10y agobut then doesn't the reciever have to pay taxes?
- akurtzhs 10y agoAt least in the US, this is incorrect. There is a gift tax, but it's paid by the donor, and they can give up to the annual exclusion amount a year without hitting it. This year, the limit's $14,000. Once a gift goes past that for the year, the excess starts counting against the donor's lifetime exclusion and needs to be reported on the donor's taxes. Gift taxes come into play once the lifetime exclusion limit is exceeded, and it's $5.4 million.