reporting a cash gift from a parent

[Paolooch]

A parent cashed in an annuity, paid the income taxes, and gifted us the proceeds.  He had to report the amount due to the amount.  His accountant said we did not have to declare it as income, but were required to report it.  I can find nothing to corroborate that.  Is the accountant correct?  If so, what is the form needed to report it?

Thanks, and stay safe.

Th666

[xmasbaby0]

No you do NOT have to report the gift.

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.

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-...

[Paolooch · Accepted solution]

Thanks for confirming.

And, to close the loop:

"report the amount . . . "  should have been "report the gift . . . "

Stay safe.

TH666

[williamwally1]

Thank you for your response.  However, just to be clear, I may need to provide additional details.  I received 15 shares of a stock in 2003 (transferred the stock to my name).  Its value at the time was about $5,000.  I sold it in 2020 for less than $5,000.  My 1099B does not contain a cost basis for the stock (box 1e).  Is any of the proceeds taxable?  If so,  how much, and how do I report it?