I am NOT in deep dodo.
“There is typically a tax-free gift limit to family members until a donation exceeds $15,000 (jumping up to $16,000 in 2022). In these instances, the IRS is usually uninvolved. Even then, it can just result in more paperwork. At the federal level, assets you receive as a gift are usually not taxable income.”
” $18,000
For 2024, the annual gift tax exclusion is $18,000, meaning a person can give up to $18,000 to as many people as he or she wants without having to pay any taxes on the gifts.Mar 21, 2024”
So I can breath easy. I am not going to prison. :-)
does this mean that neither the giver nor the recipient has to pay taxes on that money?
Sorry to panic you, I may have misunderstood what that website said. You would only have to report it if it was over the limitation.
This is what it said but I’m not sure what it means. But if your research showed no need to file, then I’m sure that’s accurate. You are known for your research skills!
“Gifts made in amounts above the annual exclusion generally reduce your lifetime exemption amounts. For example, if an individual were to give $100,000 to their child, the first $18,000 would qualify for the annual exclusion, and the remaining $82,000 would reduce their lifetime gift and estate tax exemptions.
The gift giver is required to file and report the gift made but may not be subject to the gift tax liability up to the 40% rate depending on prior lifetime gifts made. The recipient usually doesn’t need to report the gift as it is not considered taxable income.”
How is your one eye? And how is the dryness?
I’ve had a bad flareup of dryness. You would think that the hurricane and the rain and all the moisture in the air it would be the opposite.