Legal Question in Tax Law in New Mexico
How do I legally send large sums of money within the US? I want to send a family member $100,000, as a gift (so it is not considered income on their 1040). Is it best to send it in chunks (under $10,000 each) over a period of time? Tax implications? (tax that I would need to pay...tax they would be liable for on their taxes)?
Thank you!
1 Answer from Attorneys
Electronic transfer is the usual current method of transferring funds. The older methods of cashier's check, certified check, or money order are also available, as is the plain old check on your account. It is not wise to attempt to 'break down' the total amount into smaller chunks, as doing so to avoid the $10K reporting law is a serious crime. As for taxes, gift taxes are the responsibility of the giver, although you may be able to give up to $12K per year to a family member tax free. Check with your account for definitive information about the gift tax laws.
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