Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.
Originally posted by: Clocker
If I cash out my annuity which is about 50k, pay taxes on it, and give it to my child. Does my child need to pay taxes on it also?
Does anyone have any ideas? And if you do where can i find it in the IRS code.
Thanks
Originally posted by: EagleKeeper
when you gift it; you can only do about 12K per person per calendar year.
After that you are responsible for a gift tax.
Note that your spouse can also give the same amount to the same person under the same restrictions.
If the receiver is married, you can give to the spouse also.
Originally posted by: EagleKeeper
when you gift it; you can only do about 12K per person per calendar year.
After that you are responsible for a gift tax.
Note that your spouse can also give the same amount to the same person under the same restrictions.
If the receiver is married, you can give to the spouse also.
Originally posted by: iamwiz82
Originally posted by: EagleKeeper
when you gift it; you can only do about 12K per person per calendar year.
After that you are responsible for a gift tax.
Note that your spouse can also give the same amount to the same person under the same restrictions.
If the receiver is married, you can give to the spouse also.
So both could give $12k each on Dec 31 and Jan 1?