If I received a gift from my parents of $75,000.00 and spent it in the same year do I have to report that gift on my taxes?

[diegosuarezdelre]

I received a gift of $75,000.00 on the year 2017 and I spent that entirely on a property in the same year. Therefore do I need to report that gift on my taxes? Since I did not keep a dollar.

[DS30 · Accepted solution]

No you will not need to include any gifted income on your income tax return. Gifted cash is not considered taxable income by the IRS.

[diegosuarezdelre]

I see, but how about the donee? I understand they have to report it since its more than 14k but will they need to pay taxes on it? or does the whole 75k goes under the 5 million liftetime?

[DS30]

They may have to file a Form 709 to report the gift but it would be non-taxable if it falls below the lifetime gift exclusion amount.

[diegosuarezdelre]

Great thanks!

[macuser_22]

Note: form 709 is not an income tax form and not supported by TurboTax.  That has to be mailed separately to a different address specified in the form 709 instructions.