Dear Clients and Friends,
My LISTEN TO LAWRENCE LETTER about the $15,000 per person, per year GIFT TAX exclusion prompted a flood of questions about the income tax ramifications for the donee. Here are three examples and my short and sweet response:
Love the “Listen to Lawrence Letters” and I often forward them to friends who may be interested. A question about this recent question about monetary gifts: If I give $100,000 to a relative or friend, I know I don’t have to pay tax on it. Since I have to report this on a gift tax return, does the recipient then have to pay income tax on it? Thanks for all you do!
Is there a tax implication for the receiver of the money gift? If so, at what amount would they have to claim the gift(s) as income? Thanks!!
I understand what you say about giving the $15,000 & the gift tax. How do the children that you give this money to report it? Is there a tax at their end? Thank you.
Good news! The donee of the gift does not report the gift or pay any tax. THERE IS NO INCOME TAX ON THE RECEIPT OF A GIFT!!!!! WOO HOO!
I hope this helps! Please forward this information to your friends and relatives to share these informative answers to some very commonly asked questions.
And, if anyone you know would like to receive this
Listen to Lawrence Letter, just have them email me at
firstname.lastname@example.org and I’ll add them to the list!
As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.
Let’s stay connected.
Until next time…
peace, health and happiness,
Lawrence Eric Davidow