For tax year 2009 or 2010 one family member can gift to any other number of family members up to $13,000 each without any reporting by either party each year.
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.
If you give any one person gifts in 2009 or 2010 that were valued at more than $13,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts each year.
For more information go to the IRS gov web site and use the search box for publication 950, Introduction to Estate and Gift Taxes, IRS Form 709 United States Gift Tax Return, and Instruction for Form 709.
The instructions are available at the IRS gov web site choose within Forms and Publications
However, what you call a gift and what the IRS defines as one may be different. And many things the world calls a gift are very much taxable indeed.
For example, remember when Oprah gave everyone in the audience a gift of a car? And then the INCOME TAX on the value of that gift was indeed due by the one getting it? (As is tax on winning any game show or lottery, etc)
The same is true in most all situations (outside of family) - call it what you want that doesn't change it (bonus, gift, holiday extra, performance, good looks, etc- whatever - it's income) - if you are given ANYTHING of value the value you have been given is taxable. PERIOD
a gift tax
No, you do not claim gift money as income because gift money is not considered "taxable income" within the meaning of the US Internal Revenue Code. In fact money given as a gift may be subject to federal gift tax that the person making the gift has to pay under certain very specific circumstances, which no one wants to read about here. Feel free to check the IRS Code for the details.
Gift tax, when applicable, is paid by the one giving the gift,
as of 2012 it is $15,000 per year.
Not only can you not deduct it, you might be required to pay a special "gift tax" on it.You can deduct money given to certain types of charities, but anything earmarked for a particular person cannot be deducted.
it means a gift of money from one person to another.
Well, the gift is free to you. Not to the other person who gives the gift.
a gift tax
A benefactor is a person who gives another person a gift, usually in the form of money to some form of charity or organization.
You can try, but most people won't accept a gift from a stranger (Unless the person is actively soliciting for free money). A "respectable" person will decline a gift from a stranger because respectable people "know" that there is no such thing as a free gift, there is always a catch. Sadly, many people are to suspicious to accept a gift from a stranger.
That would defeat the purpose. A gift is meant to be a show of kindness from one person to another. If you're worried the friend doesn't have the money to get you a present, that is a very thoughtful sentiment and perhaps you can give them money as a gift .. separately or as a gift card. Does that make sense?
No, you do not claim gift money as income because gift money is not considered "taxable income" within the meaning of the US Internal Revenue Code. In fact money given as a gift may be subject to federal gift tax that the person making the gift has to pay under certain very specific circumstances, which no one wants to read about here. Feel free to check the IRS Code for the details.
it means a gift of money from one person to another.
itunes gift card generator
Cash Gifting is a way for individuals to "gift" one another money where one person is the recipient of the gifts of many who come after them.
where there is a tree and ond person will go up grab a gift and open it then the secound person can take the first persons gift then the first person will go get another gift. and so on
Gifts is a way to impress another person.