Family member gift deposit

[enrique55]

If I receive $100k deposit from a family member what tax implication might this have for me?

[xmasbaby0]

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes. 

If someone gives you $100K that person needs to file a Form 709 gift form.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

[tagteam]

---

@enrique55 wrote:

If I receive $100k deposit from a family member what tax implication might this have for me?

---

Assuming you are a U.S. person receiving a gift from another U.S. person, you have no reporting requirement as a result of receiving a $100,000 cash gift.

The donor (person who have you the $100,000) will be required to file a gift tax return (Form709).

[SweetieJean]

However, you can still record it as nontaxable income for purposes of the Sales Tax deduction if you itemize.

[tagteam]

---

@SweetieJean wrote:

However, you can still record it as nontaxable income for purposes of the Sales Tax deduction if you itemize.

---

Are you certain about this? Section 102 specifically excludes gifts, et al, from gross income.

https://www.law.cornell.edu/uscode/text/26/102

[SweetieJean]

As I said, it can be recorded as nontaxable income when calculating the sales tax deduction (only).

See Other Nontaxable Income here:

Sales Tax Deduction Calculator - Income | Internal Revenue Service (irs.gov)

[Hal_Al]

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required (by the family member, not you), very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...  

[tagteam]

---

@SweetieJean wrote:

As I said, it can be recorded as nontaxable income when calculating the sales tax deduction (only).

---

I really do not want to get into some sort of contest here, but I am of the opinion that the sales tax tables are based upon AGI and the applicable Code section actually states as much with respect to those sales tax tables.

See https://www.law.cornell.edu/uscode/text/26/164

This is not to mention the fact that the "Quick Reference Guide" includes the likes of other items that are clearly not included in gross income (termed "nontaxable income"), such as reverse mortgages and federal income tax refunds.

[SweetieJean]

I used the Sales Tax Calculator on the IRS website.  When you get to the Add Nontaxable Income part, it says this:

Examples of nontaxable income you may have received:

• Child support
• Economic Impact Payment
• Inheritance or bequest
• Payments for meals and lodging for the convenience of employer
• Sickness and injury payments

For more information, see Income Quick Reference Guide.

[tagteam]

---

@SweetieJean wrote:

I used the Sales Tax Calculator on the IRS website. 

---

I understand and I also followed the link you posted, as well as having read through that "reference guide".

However, did you happen to read Section 164?