Legal Question in Tax Law in California

I'm currently a law students and gonna be taking the bar in July 2011.

In 2009 i made about $75,000 income. In 2010 I wasn't working was supported by my father. He would give me money on a monthly basis.

I'm currently in the middle of filing for my 2010 state and federal taxes. Do i need to declare the money given to me by my father as income? Gift? or what?

I'm not sure what to do?

I appreciate your response.

Thank you!!


Asked on 3/09/11, 6:31 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Gifts aren't taxable income to the recipient and you need not report them. If he gave you $10K or more during the year he has to pay gift tax, but that's his problem.

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Answered on 3/09/11, 7:11 pm
Mayer Nazarian Nazarian Law and Tax Group

Unless the money he paid you was for some type of work or he received something in exchange for the money he gave you, it is a gift. The gift would not be taxable to you or reportable by you; however, your father should file a gift tax return.

For 2010, the annual gift exemption was $13,000. Any gifts exceeding $13,000 per year would count against the lifetime exclusion. Gifts would not be taxable unless the total gifts given exceeded the lifetime gift exclusion (currently $5,000,000).

Hope this helps.

Good luck on the Bar Exam!

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Answered on 3/09/11, 10:51 pm


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