Q: If you are given a gift of money, do you have to pay tax on it.
Gift from family to Ca resident
A:
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The answer to your question depends on the amount of gift and the year in which it was made. For years 2014 and 2015, there is an annual exclusion of $14,000 per donee per year. Take a look at this IRS webpage for some detail http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes. Be sure to consult your own tax advisor to protect your legal rights.
A: If you give gift valued in excess of $14,000 for 2015, you must file a gift tax returns the IRS form 709. You can gift cumulative gifts up to $5,430,000 before having to pay the IRS any taxes. For the amounts in excess of this threshold (life time), you have to pay 40% taxes on the excess. Good luck. Zaher Fallahi, Tax Attorney, CPA.
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