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castlefree777
New Member

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

Does it mean one recipient can get 5 gifts of $15000 from 5 people and those $75000 will not be taxable for the recipient? Thank you
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Accepted Solutions
DoninGA
Level 15

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

A gift received from an individual is not reported on a tax return, regardless of the amount received.  So yes, you could receive $75,000 from 5 different individuals or even from just one individual and not have to report the gift on a tax return.

The annual gift that can be given without having to file a Form 709 is $14,000 per individual.  The reporting of the gift is only by the giver of the gift, not the recipient of the gift.

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6 Replies
DoninGA
Level 15

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

A gift received from an individual is not reported on a tax return, regardless of the amount received.  So yes, you could receive $75,000 from 5 different individuals or even from just one individual and not have to report the gift on a tax return.

The annual gift that can be given without having to file a Form 709 is $14,000 per individual.  The reporting of the gift is only by the giver of the gift, not the recipient of the gift.

castlefree777
New Member

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

It is $15,000 for 2018. Thank you very much.
DoninGA
Level 15

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

Right...For 2018 the annual gift amount is $15,000.  For the 2017 tax year it is $14,000.
castlefree777
New Member

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

Does it make any difference for the recipient if the givers are US Citizens or they are not US Citizens and live in another countries?
DoninGA
Level 15

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

Yes, it does make a difference.  If the giver of the gift is a foreign person and the amount that is given as a gift is over $100,000 then the receiver of the gift is required to report the gift to the IRS using Form 3520.  This is an informational report only so no taxes will be due on the gift.
IRS Form 3520 - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f3520.pdf">https://www.irs.gov/pub/irs-pdf/f3520.pdf</a>
IRS Form 3520 instructions - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i3520.pdf">https://www.irs.gov/pub/irs-pdf/i3520.pdf</a>
castlefree777
New Member

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

I see. The resume: If all gifts are under $15,000, in 2018, then the receiver and all givers don't need to report anything and no taxes apply. Thank you very much for your help!
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