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Gift of money to kids-Is it Taxable

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    #1

    Gift of money to kids-Is it Taxable

    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.
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    #2
    Correct

    Correct...

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      #3
      Mom needs to file a gift tax return. You're correct that the gift doesn't have tax implications for the daughter.

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        #4
        If mom and client are married and agree to gift splitting with their spouses the gift tax return can be avoided.
        In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
        Alexis de Tocqueville

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          #5
          Thanks

          Thanks for the information. Ron

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          This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

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