Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Kimberl762
Level 1

Do I report a gift of about $100,000 in mutual funds I received in June 2021? Will that be taxable?

Will I be taxed on a gift of about $100,000 in mutual funds I received in 2021? How do I report it?
1 Best answer

Accepted Solutions
Critter-3
Level 15

Do I report a gift of about $100,000 in mutual funds I received in June 2021? Will that be taxable?

Gifts received from anyone, in ANY AMOUNT of ANY KIND  are NOT taxable income  to the recipient of the gift and are not reported on your annual income tax return. 

 

The $15,000 threshold is for whether the GIVER of the gift has to file a gift tax return.  "Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, for individual  gifts over $15,000, 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/...  

 

Now when you SELL the stock you will report the sale so you must know the donor's basis  AND  the fair market value of the gift as of the date of the gifting ... get them both asap.

 

The general rule is that your basis in the property is the same as the basis of the donor. For example, if you were given stock that the donor had purchased for $10 per share (and that was his/her basis), and you later sold it for $100 per share, you would pay income tax on a gain of $90 per share.   Read the rules here : 

https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...

 

 

 

View solution in original post

3 Replies
DoninGA
Level 15

Do I report a gift of about $100,000 in mutual funds I received in June 2021? Will that be taxable?

You do not report a gift received on your tax return, regardless of the amount received.

Mike9241
Level 15

Do I report a gift of about $100,000 in mutual funds I received in June 2021? Will that be taxable?

what was the source of the gift?

 

the gift itself is not subject to US income taxes 

if the donor was a US citizen or resident a gift tax return needs to be filed by the donor. you file nothing

if the source was foreign, you may be required to file form 3520

 

Critter-3
Level 15

Do I report a gift of about $100,000 in mutual funds I received in June 2021? Will that be taxable?

Gifts received from anyone, in ANY AMOUNT of ANY KIND  are NOT taxable income  to the recipient of the gift and are not reported on your annual income tax return. 

 

The $15,000 threshold is for whether the GIVER of the gift has to file a gift tax return.  "Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, for individual  gifts over $15,000, 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/...  

 

Now when you SELL the stock you will report the sale so you must know the donor's basis  AND  the fair market value of the gift as of the date of the gifting ... get them both asap.

 

The general rule is that your basis in the property is the same as the basis of the donor. For example, if you were given stock that the donor had purchased for $10 per share (and that was his/her basis), and you later sold it for $100 per share, you would pay income tax on a gain of $90 per share.   Read the rules here : 

https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...

 

 

 

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v