Gift of $17,000

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  • arlo
    Senior Member
    • Feb 2008
    • 285

    #1

    Gift of $17,000

    Client receive gift from uncle who died. Is this taxable to client? It says the donor must pay tax on gifts over $14,000
    to an individual but I cannot find if the client must report anything over the $14,000. Help would be appreciated
  • ATSMAN
    Senior Member
    • Jul 2013
    • 2415

    #2
    If the money was received after uncle died it is not gift but inheritance!
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment

    • RitaB
      Senior Member
      • Jul 2008
      • 1382

      #3
      If gift

      If gift, and not inheritance, see: http://www.irs.gov/pub/irs-pdf/i709.pdf

      I doubt donor owes tax, but return is supposed to be prepared by donor.
      Last edited by RitaB; 02-23-2015, 08:17 PM.
      If you loan someone $20 and never see them again, it was probably worth it.

      Comment

      • JudyL
        Member
        • Feb 2015
        • 58

        #4
        Originally posted by arlo
        Client receive gift from uncle who died. Is this taxable to client? It says the donor must pay tax on gifts over $14,000
        to an individual but I cannot find if the client must report anything over the $14,000. Help would be appreciated
        Gift tax is imposed only on the donor, not the recipient.
        jklcpa

        Comment

        • AZ-Tax
          Senior Member
          • Feb 2008
          • 2604

          #5
          Form 709, is there a statue of limitation?

          Assuming a donor gifted 15K to an individual in 2009 which we all know is over the exemption amount for that tax year. Donor died in late 2014. Can the IRS go back that far?

          Comment

          • DonB
            Senior Member
            • Mar 2011
            • 281

            #6
            Originally posted by AZ-Tax
            Assuming a donor gifted 15K to an individual in 2009 which we all know is over the exemption amount for that tax year. Donor died in late 2014. Can the IRS go back that far?
            If the donor's estate is below 5.3 million, the IRS would have no reason to look back on such a gift.

            Comment

            • RitaB
              Senior Member
              • Jul 2008
              • 1382

              #7
              Yes

              Originally posted by JudyL
              Gift tax is imposed only on the donor, not the recipient.
              Yes, agree, did not read carefully.
              If you loan someone $20 and never see them again, it was probably worth it.

              Comment

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