How Much Gift Money Can You Receive From Your Mother Per Year That Is Non Taxable ?


9 Answers

Matt Domm Profile
Matt Domm answered
You can receive any amount as a gift from your mother up to $13,000 a year without her having to pay any taxes on them. No tax is payable on gifts of up to the annual exclusion of $13,000 on behalf of the donor, nor does the receiver have to pay or report the gift.

Any gift or estate received by you is not treated as income. You, the receiver of the gift (no matter the value) do not file any gift tax return or pay any gift tax. Anything you receive as a gift is not included in your income until it produces income such as interest, dividents or rent. That income is taxable to you.

All gifts of more than the annual exclusion amount ($13,000 at the moment) must be reported by the donor. There is a lifetime exclusion of £1 million. The person making the gift that exceeds the £13,000 then needs to include the gift in the lifetime exclusion and file form 709 in order for the gift to be documented and properly recorded.

The following list of gifts are fully exempted from tax, no matter where from and which form they are received in:  Gift received under a will or by inheritance, gift from local authorities, gift in contemplating the death of the donor and gift from any trust or institution registered as charitable.
Robyn Rothman Profile
Robyn Rothman answered
Once a gift of $12,000 is given, the gift giver must file a Form 709 with the IRS.   Gift Tax and  Gift Tax instructions
thanked the writer.
Daniel Tagliento
Daniel Tagliento commented
By USA IRS limits one time per year, per person has been going up, check by calling into or emailing a local IRS office. The previous $12,000 limit may have gone upto to $13,000, but check first....should there be any extra money 'burning' a hole in mom's pocketbook, I can provide my bank's 'wire' number!
Robyn Rothman
Robyn Rothman commented
I did check. If you go to the sites I included, you'll see. I worked for the IRS for 28 years, and I worked 709 forms for more than half that time. I try to keep up. It has gone up to $13,000 for 2008, but that is for next year's taxes. Thanks for helping me clarify that.
Anonymous commented
Does anyone know what I can give in 2010?
Aisha Profile
Aisha answered
There is a limit to the amount you can get as gift and not pay tax on it. According to US laws, a person can get a "gift" of up to $11,000/year from a relative or any other individual. Beyond this limit he would have to pay taxes on it as it is then considered as income.
Steven Vakula Profile
Steven Vakula answered
Gifts are not taxable to the recipient. The purpose for gifting money is based on the tax issues of an estate of someone that dies with great wealth. It is also for wealth individuals that may be contemplating death and needs to reduce their estate before death so that when they die their wealth falls below this limit. The persons and their estate must be very very wealthy to! The gifting may reduce the estate to a point that the estate at death is below the threshold that would subject the estate of a deceased person to be taxed at a US Federal and State level. This is a 50% tax rate so if someone is fortunate enough to have this much wealth, the concept is to gift up to the maximum amount to the individuals they choose in order to reduce how much wealth will remain at their death. This is a very controversial taxation as the monies accumulated through life is in most cases have been taxed prior as it was earned. Then if the accumulation is such that it meets the US Estate Tax assessment, it is however reduced after death by expenses such as the funeral, cost of disposal and sale, accounting and legal issues and other allowable expenditures so it is even possible to fall below the tax threshold by means of estate administration. If however this is not accomplished the US Government will tax the estate at approximately 50% rate, it is given a credit which reduces the federal tax to about 39% but the State of the individuals residence has what is known as a pickup tax that equals the federal tax credit so the tax is right about 50%. Inheritance and gifts however are not taxable. It is only the estate that is subject to tax. This is why trust and related instruments are setup by individuals to help avoid this taxation on, in most instance, prior taxed accumulations.
Cynthia Vars Profile
Cynthia Vars answered
My mother was placed in a home for dimensia last summer. She is quite well off and always gave each child $10,000.00 at the end of the year. Now that she is in a home and my brother is the executive of her will, is this still allowable?
Anonymous Profile
Anonymous answered
How much cash can individuals be gifted without having to claim for tax purposes
Anonymous Profile
Anonymous answered
thanked the writer.
Anonymous commented
The original question was..."How Much Gift Money Can You Receive From Your Mother?"

The form 709 is for you if you are GIVING that gift. Not when you are RECEIVING that gift.

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