The Listen to Lawrence Letter: A gift tax question

CLIENT QUESTION:

Thank you for all the information you give us. It’s such a help.

This last email about the increase in the amount a person can give as a gift has always created a different question for me.

I don’t pay a gift tax when I give the gift, but does the person receiving it have to pay a different “gift tax” or does it just come under the amount that they get and report as “income” & is taxed at the end of the year?

Thank you for any info regarding the recipient of the gift.

MY RESPONSE:

The recipient of a gift is receiving a gift, not income. Therefore, they have no duty to report the gift and no liability to pay income tax. How about that?!

And, if anyone you know would like to receive this

Listen to Lawrence Letter, just have them email me at

info@davidowlaw.com 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.

Stay safe!