Thank you for your feedback. Recipients of gifts are not subject to gift tax on those gifts -- only the individual(s) making the gift may be subject to gift tax.
Retired now, gifted my son a house orginal cost of 90K, same year gifted my daughter house orginal cost 130k. Do I need to report a 709 this year on both houses and pay taxes or when they sell they pay the taxes then, just wondering
Hi, Thanks for the video! Here is a question that perhaps you could answer: In the situation where a married couple is making gifts from their joint brokerage account to their children. If they keep the total of the gifts under $30K per child, are they required to file a 709 gift tax return? The 709 form indicates that "each spouse must file a gift tax return if they have made a gift of property held by them as joint tenants or tenants by the entirety". However, it also indicates that "If a gift is of community property, it is considered made one-half by each spouse" and that you are not required to file form 709 if "You did not give more than $15,000 to any one donee."
If I use up the $12 lifetime exclustion now and the amount goes down in a later year (like 2025) will I have to pay gift tax on the amount over the new lifetime exclusion limit?
In the U.S., a recipient (donee) of a bona-fide does not include the gift in income or pay income or gift taxes. If anyone owes gift taxes based on the gift, it would be the individual(s) who gave the gift (donor).
if my brother gave me a 60.000 dollar gift how much tax would I have to pay? please I need an answer. I live in California, I know states have different tax laws.
Can i gift money to Friends, Neighbors, or even a stranger(with no relationship) or anyone? I would like to know the limits to this. that is why i am asking.
Any time you give anything to anyone, except in cases where the IRS has made other rules, the gift tax applies. If you invite your friend over and "gift" him a snack, the gift tax applies, but since the snack is (likely) valued below $15,000, you don't need to file form 709. "The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift. The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift."
If the parent sell the stocks and Realestate and give the cash as gift from profit that they earned to the child does parent have to pay capital gain tax of the profit and child don’t have to pay tax either if the gift amount below 11 million
2 people own a house equally. later, one person dissolves his partnership for $1. In reality, did he just gift half the house to the remaining partner? Or did e simply sell his interest for $1.00
Thank you for your inquiry. The question of whether amounts gifted are included in the gross income of the donor (the individual giving the gift) must be answered separately from the tax implications of the gift itself. In other words, if any amounts received by the donor represent taxable income in a particular tax year, then a gift made in the same tax year will not create any sort of deduction or otherwise affect the tax treatment of those amounts received. As a result, you must first assess the tax implications of any amounts received by the donor to determine if they must be included in income for income tax purposes for the donor - the subsequent gift has no impact on this analysis. I hope this helps!
Hi, I have a question. I bought a rental property back in 1996 for $420K and now it is worth $2M. If I sell it now I would have to pay the capital gains tax. What if I gift that house to two of my children and file a 709 form. Am I still subject to capital gains tax? Are my children subject to capital gains tax? If my children sells the house, are they subject to capital gains tax? Thank You.
Excellent video. Thanks so much. I wish you would have given an example of what numbers to put where on the Schedule A for gifts >$15K. Would columns D and F be the same for a cash gift of, say, $100K? Thanks!!
Hello there, Thank you for watching the video and for your feedback! For a cash gift of $100,000, I would generally expect columns "D" and "F" to be the same. However, let's say that individual "A" purchased foreign currency from country "C" for $100,000 USD. During the time that individual "A" held the foreign currency, country "C" fell into a hyper-inflationary environment which substantially devalued the currency from country "C". In this case, columns "D" and "F" might be different if individual A was to gift the currency to someone else. Accordingly, it is crucial to consult with a qualified tax professional to ensure that Form 709 is filed correctly in any particular situation. Hope this helps! :D
Hi if I give my son 100k at once this month but he pays me back 100k to my bank account before the end of the year. Do either of us have to pay gift tax ? Please help 🙏🏻🙏🏻
My wife was left as a beneficiary of life insurance but it was always intended for his wife whom was a victim of identity theft. I would only be able to give her only the $15000 per year and not have to report it?
Great-great-great video!!!!!!!. Could you please, reply me back ASAP . The receiver of the cash (married daughter) of 100k is the only one that will fill the form 709?. And does the donor has to write in the memo line of a check or in a bank transfer description the term : “cash gift”? Or something for the record that it is a cash gift from the donor?. Thank you very much in advance for your comments to my request.
I gave my daughter some land I owned to her. Estimated market value is 59,200 (on property tax statement), After subtracting 15,000 it comes to 44,200. Looking at the table for gift taxes, this would mean I would have to pay over 8,000 in gift taxes. Do you have any suggestions on what I can do to not have to pay this gift tax?
Yes, that is correct. The requirement to file Form 709 is based on the amount gifted to a particular individual in a particular tax year. As an example, even if a taxpayer gifts $15,000 in tax year 2019 to each of 100 different individuals ($1,500,000 in total), that taxpayer would generally not be required to file Form 709 for that tax year.
Thank you for your question! Form 709 must be filed separately from Form 1040 as Form 709 may not be electronically filed and is only accepted by the IRS as a paper filing.
I have a stock that is low in value now. But, my family member is ready to buy it. If I send it as a gift will I be able to show the transaction as Capital Loss? Stock will soon be a year old in 4 months time.
Hello Abadi, Thank you for your question! In the U.S., it is always the individual(s) giving the gift who pay gift taxes, if anyone. Recipients of gifts never pay gift taxes. Hope this helps! :D
Excellent and informative video. So this may be a dumb question but I just want to be sure I understand. So if I gift a person, let’s say $10,000, then I get to deduct that $10k off of my taxable income, right?
Hello Daniel, There are no dumb questions! To be clear, gifts are not deductible for income tax purposes. While a charitable contribution made to a qualified charitable organization may generally be deducted as an itemized deduction on Schedule A of Form 1040 (assuming that the taxpayer is itemizing deductions), gifts made to individuals do not generate any tax benefits for the donor of the gift.
So if I'm given 3 million as a gift from my mother, I would have to file a 709 and report it, but I wouldn't have to pay taxes on it because it's under 11.18 million. Is that correct?
Hello Pablo, Thank you for your question! A gift will not be classified as a gift for income tax purposes if goods and/or services have been or will be provided in exchange for that gift. As a result, any amounts received in exchange for goods/services are typically classified as compensation. Accordingly, if you receive compensation, those amounts must generally be included in your income for tax purposes.
In that case, you are typically dealing with two separate tax implications: 1. compensation and 2. tuition payments. Accordingly, you will generally first need to include the compensation in income and then determine whether you qualify for any tuition-related credits or deductions for the particular tax year in question.
For example: Paypal, I have 5 DIFFERENT friends send me $14,000 each. I would have about $70,000 My question is, as a RECEIVER, do I need to pay taxes on how much I RECEIVED?
Finally, a straightforward explanation. Thank-you!
Great video! But you didn't mention what taxes the person receiving the gift has to pay.
Thank you for your feedback. Recipients of gifts are not subject to gift tax on those gifts -- only the individual(s) making the gift may be subject to gift tax.
@@EfrosFinancial does it need to be reported?
Only if gift tax is due.@@tashanathompson4487
Very clear explanation. Thanks
Retired now, gifted my son a house orginal cost of 90K, same year gifted my daughter house orginal cost 130k. Do I need to report a 709 this year on both houses and pay taxes or when they sell they pay the taxes then, just wondering
Hi, Thanks for the video! Here is a question that perhaps you could answer:
In the situation where a married couple is making gifts from their joint brokerage account to their children. If they keep the total of the gifts under $30K per child, are they required to file a 709 gift tax return?
The 709 form indicates that "each spouse must file a gift tax return if they have made a gift of
property held by them as joint tenants or tenants by the entirety".
However, it also indicates that "If a gift is of community property, it is considered made one-half by each spouse" and that you are not required to file form 709 if "You did not give more than $15,000 to any one donee."
NO.
If you are never going to come close to $11m does this matter?
I can figure out the number for line 4 on the form, I have everything else. Any suggestions?
If I use up the $12 lifetime exclustion now and the amount goes down in a later year (like 2025) will I have to pay gift tax on the amount over the new lifetime exclusion limit?
Good video, does the Donee have to add gift amount to their tax information?
Does the receiver of a 15k gift have to claim this as income on the receivers return and pay tax on this income?
Following.
In the U.S., a recipient (donee) of a bona-fide does not include the gift in income or pay income or gift taxes. If anyone owes gift taxes based on the gift, it would be the individual(s) who gave the gift (donor).
if my brother gave me a 60.000 dollar gift how much tax would I have to pay? please I need an answer. I live in California, I know states have different tax laws.
Can i gift money to Friends, Neighbors, or even a stranger(with no relationship) or anyone?
I would like to know the limits to this. that is why i am asking.
I need money for dental work if you would like help. Starting cause lot pain to left side my head.
Any time you give anything to anyone, except in cases where the IRS has made other rules, the gift tax applies. If you invite your friend over and "gift" him a snack, the gift tax applies, but since the snack is (likely) valued below $15,000, you don't need to file form 709.
"The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift.
The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift."
Why does my CPA say that I have to pay tax on all gifts?
If the parent sell the stocks and Realestate and give the cash as gift from profit that they earned to the child does parent have to pay capital gain tax of the profit and child don’t have to pay tax either if the gift amount below 11 million
Hi Efros, a video like this but to foreigners please!
What if 1 person receives multiple gifts from multiple people? Each gift does not go over the tax exclusion but all in total it does.
Gift tax is about the person giving the gift - not the person receiving it.
2 people own a house equally. later, one person dissolves his partnership for $1. In reality, did he just gift half the house to the remaining partner? Or did e simply sell his interest for $1.00
Can anyone help with line 4 in IRS Form 709
is gift money excluded from gross income of gift giver?
Thank you for your inquiry. The question of whether amounts gifted are included in the gross income of the donor (the individual giving the gift) must be answered separately from the tax implications of the gift itself. In other words, if any amounts received by the donor represent taxable income in a particular tax year, then a gift made in the same tax year will not create any sort of deduction or otherwise affect the tax treatment of those amounts received. As a result, you must first assess the tax implications of any amounts received by the donor to determine if they must be included in income for income tax purposes for the donor - the subsequent gift has no impact on this analysis.
I hope this helps!
Hi, I have a question. I bought a rental property back in 1996 for $420K and now it is worth $2M. If I sell it now I would have to pay the capital gains tax. What if I gift that house to two of my children and file a 709 form. Am I still subject to capital gains tax? Are my children subject to capital gains tax? If my children sells the house, are they subject to capital gains tax? Thank You.
Hello Function Motors,
Thank you for your question -- I answered it in a video here: ua-cam.com/video/3KKisehWr2E/v-deo.html
I hope this helps! :D
Thank you very much Sir your contribution of knowledge.
Excellent video. Thanks so much. I wish you would have given an example of what numbers to put where on the Schedule A for gifts >$15K. Would columns D and F be the same for a cash gift of, say, $100K? Thanks!!
Hello there,
Thank you for watching the video and for your feedback! For a cash gift of $100,000, I would generally expect columns "D" and "F" to be the same. However, let's say that individual "A" purchased foreign currency from country "C" for $100,000 USD. During the time that individual "A" held the foreign currency, country "C" fell into a hyper-inflationary environment which substantially devalued the currency from country "C". In this case, columns "D" and "F" might be different if individual A was to gift the currency to someone else. Accordingly, it is crucial to consult with a qualified tax professional to ensure that Form 709 is filed correctly in any particular situation. Hope this helps! :D
Hi if I give my son 100k at once this month but he pays me back 100k to my bank account before the end of the year. Do either of us have to pay gift tax ? Please help 🙏🏻🙏🏻
What monitor is that?
My wife was left as a beneficiary of life insurance but it was always intended for his wife whom was a victim of identity theft. I would only be able to give her only the $15000 per year and not have to report it?
Great-great-great video!!!!!!!. Could you please, reply me back ASAP . The receiver of the cash (married daughter) of 100k is the only one that will fill the form 709?. And does the donor has to write in the memo line of a check or in a bank transfer description the term : “cash gift”? Or something for the record that it is a cash gift from the donor?. Thank you very much in advance for your comments to my request.
So if i gifted $50K. I would claim $35K on a 709 but not necessarily pay gift tax?
I gave my daughter some land I owned to her. Estimated market value is 59,200 (on property tax statement), After subtracting 15,000 it comes to 44,200. Looking at the table for gift taxes, this would mean I would have to pay over 8,000 in gift taxes. Do you have any suggestions on what I can do to not have to pay this gift tax?
No tax.....watch Alex's video.
So if I gave $13k to 5 people this year I wouldn't have to fill out the 709 form?
Yes, that is correct. The requirement to file Form 709 is based on the amount gifted to a particular individual in a particular tax year. As an example, even if a taxpayer gifts $15,000 in tax year 2019 to each of 100 different individuals ($1,500,000 in total), that taxpayer would generally not be required to file Form 709 for that tax year.
Great Video. If I gift say 50000 to Person A and 10000 to Person B, when I file 709, do I have to report the gift to Person B in Form 709
No, only if it's above $15k
I have no SSN. My boyfriend gifted me Tesla. should I pay taxes?
No gift tax, but if you sell it there would presumably be a capital gain and you would pay tax on the gain.
Do you file this form and add it to your 1040 form and schedules that you normally file from Jan to April 15th ?
Thank you for your question! Form 709 must be filed separately from Form 1040 as Form 709 may not be electronically filed and is only accepted by the IRS as a paper filing.
I have a stock that is low in value now. But, my family member is ready to buy it. If I send it as a gift will I be able to show the transaction as Capital Loss? Stock will soon be a year old in 4 months time.
No.
Great job ! Thank you for the video !
Who pay the taxes the giver or the receiver.
Hello Abadi,
Thank you for your question! In the U.S., it is always the individual(s) giving the gift who pay gift taxes, if anyone. Recipients of gifts never pay gift taxes. Hope this helps! :D
@@EfrosFinancial Can corporations give gift to individuals ? How does it work?
So If I receive more than 15k in gifts from someone I the receiver need to do the 709 form?
Typically, the donor pays the gift tax. However, if they do not file form 709, you may be required to from what I have read.
@@BaseballBigE okay but lets say
Friend sends $14,000
Another friend sends $14,000
I receive total $28,000
How much do I (ME) have to pay in taxes?
In your example, you wouldn't because they're giving it under the $15,000 amount. $15,000 and below are not subject to be reported.
Excellent and informative video. So this may be a dumb question but I just want to be sure I understand. So if I gift a person, let’s say $10,000, then I get to deduct that $10k off of my taxable income, right?
Hello Daniel,
There are no dumb questions! To be clear, gifts are not deductible for income tax purposes. While a charitable contribution made to a qualified charitable organization may generally be deducted as an itemized deduction on Schedule A of Form 1040 (assuming that the taxpayer is itemizing deductions), gifts made to individuals do not generate any tax benefits for the donor of the gift.
i am studying for the series 7 and i just found your channel if i have any questions hopefully you can answer them:)
Hey Andrés, thank you for your comment -- I just might be able to! :D
So if I'm given 3 million as a gift from my mother, I would have to file a 709 and report it, but I wouldn't have to pay taxes on it because it's under 11.18 million. Is that correct?
The GIVER is the entity that has tax implications, not the RECEIVER.
Correct
@@Corkfish1 do i still need to report a gift received even though i dont pay any taxes ?
Can I accept a cash gift in exchange for a service?
Hello Pablo,
Thank you for your question! A gift will not be classified as a gift for income tax purposes if goods and/or services have been or will be provided in exchange for that gift. As a result, any amounts received in exchange for goods/services are typically classified as compensation. Accordingly, if you receive compensation, those amounts must generally be included in your income for tax purposes.
@@EfrosFinancial Thank you very much! Now, what if the intended purpose with the compensation is for tuition?
In that case, you are typically dealing with two separate tax implications: 1. compensation and 2. tuition payments. Accordingly, you will generally first need to include the compensation in income and then determine whether you qualify for any tuition-related credits or deductions for the particular tax year in question.
@@EfrosFinancial Thank you, again!
nice explanation
great video, i am informed, thanks
For example:
Paypal,
I have 5 DIFFERENT friends send me $14,000 each.
I would have about $70,000
My question is, as a RECEIVER, do I need to pay taxes on how much I RECEIVED?
No, the giver pays.
In your example, in 2021, your 5 friends would not pay any gift tax because it's below the $15,000 yearly gift exclusion
@@rfarchives3320 no income tax for a receiver ? doesnt even have to file a form for it?
Thanks, you are so great!
If y’all need to get rid of funds. Please gift them to me.
I wish you could be my CPA. It’s a waste land out there