Legal Question in Tax Law in California

Gift Money/Taxes

A friend has started giving me checks in

amounts of 1,000-8,000 dollar

incraments. Do I have to report this

money to the IRS?


Asked on 7/23/07, 7:41 pm

2 Answers from Attorneys
Joel Selik www.SelikLaw.com

Re: Gift Money/Taxes

No, but that person may have a gift tax problem or a estate tax problem when they die if over $20,000 combined per year.

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Answered on 7/23/07, 7:59 pm
Scott Linden Scott H. Linden, Esq.

Re: Gift Money/Taxes

It depends on how the money is characterized. Tax free gifts between people are allowed up to $11,000 annually. A trust is a better means of transferring the money.

Please feel free to contact me at my office to discuss further. The numbers provided by LawGuru are correct as well as our firm's informative website located at No-Probate.com.

-Scott

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Answered on 7/23/07, 8:27 pm


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