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Do I have to pay gift tax on a gift to help pay for a house?

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βˆ™ 2007-12-23 18:30:05

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Under the U.S. Internal Revenue Code, gift tax is not counted on the first $11,000 per person per year (more or less, depending upon which year the gift was made).

== == The tax is paid as a gift tax by the givor. (Although it has to be a gift , and some things like gifts by an employer to an employee are actually always considered payroll.)

If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit: * Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit * Gifts to your Spouse * Gifts to a Political Organization for its use * Gifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift. Now importantly in family situations...there may be a credit or exclusion available if there is ever an estate tax situation.

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βˆ™ 2007-12-23 18:30:05
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Related Questions

What is gift tax if give house as gift?

I just gave to my house title to my son (21 years old). The title has life estate in it. Is there is any gift tax do i have to pay? or my son have to pay any tax? I live in California jamie

Does the recipent have to pay gift tax when given a house?

No, the recipient NEVER pays gift tax. Gifts are not income and not taxable. However, the person GIVING you the gift may have to pay gift tax on the value of the house that exceeds the annual exclusion of $15,000. They may be better off gifting you a partial ownership over several years, where each part is worth less than $15,000. If the gift is from your spouse, there is no gift tax.

Does an adult daughter have to pay tax on a 12000 gift from her parent?

If it is a gift from you to her, and YOU paid for it, if a tax is applied, you will pay it.

Do you pay gift tax on labor?


When would someone need a gift tax?

A gift tax is very rare and most Americans don't need to pay tax on ordinary gifts. The person who gives the gift, not the person who receives it, must pay the tax.

Do you pay sales tax on a car in MA if it was a gift?

There is no tax on a car given as a gift in MA.

Does the donee have to pay income tax on a gift?

No. If any gift tax is due, it is the responsibility of the donor. However, in extreme cases, the IRS may try to claim the gift if the donor fails to pay tax.

Do you pay income tax on a gift from your brother or sister?

You don't pay income tax on the receipt of the gift. However, if the gift consists of property that has gone up in value, you may have a taxable capital gain when you sell or dispose of the gift. Your brother or sister, depending on the size of the gifts he or she gives, may have to pay a gift tax, which is different than an income tax.

If you receive a gift of 30000 dollars from my dad for a down payment on a house do I have to pay taxes on it?

Gift tax is anything over $12,000. However, if you are married (living together, whatever), you can each receive $12,000 without tax. Actually, the one giving the gift is liable for the tax on it.

Is there a gift tax from father to daughters?

Yes, if the gift exceeds the gift-giver's annual exemption of $15,000 per recipient, the gift giver must pay the gift tax.

Does the recipent of a gift pay tax?

Gift taxes are owed by the party who gives the gift and not the recipient.

Who can accept a tax free monetary gift?

anyone can accept a tax free monetary gift if it is under 10,000 above that and you have to pay taxes on the gift. this is usually done when older relatives want to help out young nieces and nephews etc.

Who pay gift tax?

The person making a large gift (i.e., over $15,000 in 2012) would owe the tax.

If you receive money from your grandparents do you have to pay tax?

No. They may have to pay gift tax. See discussions under that topic.

Can you sell your house with a federal tax lien on it?

Not without satisfying the lien or you can subordinate a tax lien in order to sell the house. Sometimes, the IRS will allow you to do this, if they believe it will help you to pay your tax liability.

I was given a car is there a gift tax in Ohio?

There is a federal gift tax if someone gives you more than the $15,000 annual gift tax exemption, and they would need to file an IRS Form 709 and pay the tax.

Do you have to pay income tax on a cash gift?

If it is over $13,000

When receiving a car as a gift do you need to pay taxes?

You will pay some kind of tax.

Do you pay tax if you have no income?

You don't pay income tax. But you may still have to pay sales tax, gift tax, property tax, gas tax, motor vehicle tax, import duties, and any other taxes that may apply in your situation.

Do you pay Tax on car gift in Ohio?

No. There is a limit of $12,000 annually for a single person to give away as gift. And if any tax is due on the gift, it is paid by person who makes the gift and not the recipient.

Do you have to file taxes on gifted money from parents?

You don't. If it is above the amount they are allowed to give you GIFT tax free.they pay a gift tax

Do you have to pay sales tax for a car given to you as a gift in California?

No, there is no sales tax on a vehicle obtained as a gift in California. Others have said that yes, you do.

Do you pay taxes on a house buyout?

You pay tax on the profit from a sale. And get a tax benefit from a loss.

Do you owe any gift tax if your house is transfered to your daughters name?

Yes, if the house is worth more than the annual $15,000 (in 2012) exclusion for gifts to anyone other than your spouse. Your tax attorney may help you structure the transfer over several years to avoid owing any gift tax.

How much tax do I pay House payment, Homestead, 85 yrs. old, Social Sec. tax, and doctor ?

Call the IRS for help at 1-800-TAX-1040.