@dimi1119 wrote:
Thank so, so much, truly amazing advice.
So, if a living family member makes a gift to me. A check, let's say $25,000, I can go to my bank and deposit this check. Not worry about having to report it on my tax return. In addition my bank will let the IRS know that I made a deposit of said amount. What does the IRS do with that information if it doesn't get taxed then? Does it just keep that information for record keeping purposes?
Also, the living family member that gifts me the check for $25,000. They, themselves, actually do need to report that to the IRS? That they are making a gift to a family member in the amount of $25,000. Is there a form that is provided for them to fill out? Or does their bank create this form? Or is it on the IRS website?
Thank you so much!
The Treasury department is notified of large cash deposits for determining bank fraud or other illegal activity.
The giver of a gift to an individual of over $15,000 in 2021 or over $16,000 in 2022 has to report the gift given to the IRS using Form 709. This form is available through the IRS and has to reported in the tax year of when the gift was given. However, there are no taxes owed on the gift given if the total of all gifts ever given is less than $11.7 Million in 2021.
