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davem2
Returning Member

Gift tax?

Looking for confirmation on my understanding of gift tax.  I just received a check for $56,000 from a relative for appreciation.  I plan on depositing that check pronto.  As I understand it, my bank will be filling out a form notifying the IRS of this large deposit.  I do NOT need to indicate this on my tax return as income.  The giver will need to fill out a 709 form.  They will need to indicate the gift of $41,000 (56000 - 15000).  The 41,000 is deducted against his total lifetime ceiling of some 11 million before being taxed.  So the giver will not pay any gift tax.  Is that about correct?

2 Replies
Critter
Level 15

Gift tax?

As I understand it, my bank will be filling out a form notifying the IRS of this large deposit.  I do NOT need to indicate this on my tax return as income.  Correct ... the receiver of a gift has nothing to do or report no matter the amount. 

 

The giver will need to fill out a 709 form.  They will need to indicate the gift of $41,000 (56000 - 15000).  The 41,000 is deducted against his total lifetime ceiling of some 11 million before being taxed.  So the giver will not pay any gift tax.  Is that about correct?  Also correct. 

davem2
Returning Member

Gift tax?

Thank you Critter!

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