Gift of money to kids-Is it Taxable

[photoman]

I have a client that her mom gave her 40,000.00. This was by check. My client the one that received the money is asking if she must report this. I believe that since her mother gave the gift , the mother is responsible to report the gift. The daughter would not need to report. Does this seem correct. Any comments.

[Lion]

Correct

Correct...

[JCH]

Mom needs to file a gift tax return. You're correct that the gift doesn't have tax implications for the daughter.

[DaveO]

If mom and client are married and agree to gift splitting with their spouses the gift tax return can be avoided.

[photoman]

Thanks

Thanks for the information. Ron