gift taxes

April 11, 2006 7:13 AM

Must I report gifts on my tax return? I know the giver must pay the gift tax on gifts over $11,000, but do I have to report having recieved it anywhere on my 1040?
posted by saffron to Work & Money (12 answers total)

IANATA (tax accountant) but I'm pretty sure you do, especially if the giver is reporting it on THEIR taxes.
posted by antifuse at 7:33 AM on April 11, 2006

Here is the IRS page that relates to gift tax, a quote from it, emphasis mine.

The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.

Gifts that are not more than the annual exclusion for the calendar year.
Tuition or medical expenses you pay for someone (the educational and medical exclusions).
Gifts to your spouse.
Gifts to a political organization for its use.
Gifts to qualified charities (a deduction is available for these amounts).
posted by jessamyn at 7:37 AM on April 11, 2006

Yes, but taxable gifts are taxed on the donor, not the recipient.
posted by grouse at 7:41 AM on April 11, 2006

I think you don't. I did a quick search of the IRS web site but could not find anything that would confirm this. You should call them instead. If you want something in writing you can send them a letter.
posted by grouse at 7:43 AM on April 11, 2006

It is not taxable to you and you do not need to report it.
posted by caddis at 8:03 AM on April 11, 2006

Best answer: i had the same question a while back and called the IRS for it (my gift was coming out of the country so it wasn't an issue for the giver. they told me that if the present is $100,000 or less, i don't have to report it. i called twice just to make sure :)

hope this helps.
posted by karen at 8:09 AM on April 11, 2006

Best answer: oh and ,yes, it's not taxable under any circumstance for the person who's given the gift but no need to report it either if it's less than 100,000. that's what i was told. feel free to call and ask yourself. they are generally very helpful.
posted by karen at 8:10 AM on April 11, 2006

Best answer: From IRS Publication 525 - Taxable and Non-Taxable Income:

Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.

posted by caddis at 8:16 AM on April 11, 2006

If gifts are never taxable, then why did those Oprah car people have to pay $Mega in taxes for their cars? Was that considered a contest?
posted by dirigibleman at 9:12 AM on April 11, 2006

yes
posted by caddis at 9:26 AM on April 11, 2006

IANAL but I've taken income tax courses. You do not have to pay taxes on gifts you receive, and you do not have to report them, because they aren't "income" at all.

Oprah was a special case, because she was 1) doing it for publicity 2) arguably the audience members won a contest. It's an interesting question, one worth looking into, but doesn't apply to a pure gift from, say, a relative or other person who is just giving you something from the kindness of their heart, expecting nothing in return.
posted by lorrer at 9:34 AM on April 11, 2006

Someone in my family bestows annual cash gifts of 11 grand each to certain other members of the family. The giver is not one to take chances with the IRS, and that person has just informed me that caddis is correct re gifts and inheritances. The slackers lucky recipients go blithely on their profligate binges life journeys, with not a word to the IRS about the gifts.
posted by wryly at 10:37 AM on April 11, 2006