Gift Tax Explained - Do You Pay Taxes On Gifted Money?
HTML-код
- Опубликовано: 8 июл 2024
- In this video, I explain what gift tax is all about. Do you need to pay taxes when you receive a gift? Do you need to pay taxes with giving a gift? Those are both important questions I answer in this video. Also, how does estate tax work? That's related too!
Check out our other videos related to personal finances and tax, as well as business finances and tax.
If you want more live Q&As or one on one chats to get specific questions answered, check out our Patreon page:
/ nguyencpas
Our Website:
www.nguyencpas.com
Join our Facebook group for more active updates:
/ nguyencpalounge
Our online course for navigating the pandemic:
courses.nguyencpas.com/course...
Budgeting Playlist:
• Budgeting
Winning in Business Playlist:
• Winning in Business
Tax Playlist:
• Tax
PPP Playlist:
• PPP Information
EIDL Playlist:
• EIDL Information
COVID-19 Playlist:
• COVID-19
This video is for entertainment purposes only. The information portrayed in this video should not be considered as tax or legal advice. Consult with your own tax professional and attorney to get proper advice for yourself.
Receive an insane gift lately? Let me know below!
So if it's not a family member I will have to pay taxes on it. So for Example I want to pay a million dollars for a business in cash what would be my best option?
Please elaborate. If you're receiving a gift from anyone, you don't pay taxes on it. If you give a large gift to anyone, you have to consider gift/estate tax.
So help out if you can. My wife and i are planning ahead. If I die and my wife receives my life insurance and wants to give each of my 3 kids $30k each is she going to pay taxes??
Or if she fills out the 709 she can avoid those taxes? If so when does she fill it out at the time of the gift or when filling taxes?
Thank you so much bro for the amazingly clear presentation.
@@agarc776 you have to look into creating a living trust to avoid probate and an irrevocable trust so you don't have to pay for estate taxes based on your local state tax laws.
This was so helpful for my situation! So hard to find this clearly explained. Thank you!!
Thank you!!! This was exactly what I was looking for.
Thanks for explaining this very well!
ty, i was looking for this answer n explanation!
Very nice explanation. Very helpful. Thank you.
Very helpful explanation. Love your energy. Thanks!
Thank you! Veryy clearly presented. I appreciate your time.
Glad it was helpful!
great video, thanks!
Great video. Thanks
Thanks for the video .
Thank you!
That was helpful, thx
It depends on the information. I hope that as you do this more, you will get better at the transition between the information.
Thanks
Just found the channel and I subbed my guy.
This was a very clear explanation of the gift/estate tax. I glad I watched it.👍👍
Thank you
So unless someone gives away more than 12 million dollars n their life there’s no tax. that be 24 million for a couple. They only requirement is filing a 709 form which the irs uses in tracking your total. Question: How long has the gift tax been this way, linked to the estate? Was it different a few years ago where any gift over 14k or so was taxed?
cool
thanks
LIKE IT THANKS
And any years we exceed annual yearly gift tax exempt amount, we just only need to fill IRS Form 709, do not need to do anything else to let IRS know we would like it to be deduced from life time exclusion amount and do not worry about paying gift tax as long as we did not exceed life time estate exclusion amount which I guess is $12.92 million in 2023.
Is my understanding correct?
Curious , if one is the recipient of go fund me ( medical bills) do they have to paid taxes?
What do you mean by the comment at the beginning of equity in a house
Hip Hop track is FIRE❤🔥❤🔥❤🔥
QUESTION: How much can I receive from different people?--Instead a running a charity, can I receive "gift" money up to the yearly limit per person; but unlimited total amount??
Thank you so much for the info. can I ask if I need to pay capital gain tax when I sell a gifted car. I got this tax for free from my parents basically I paid 0$ on the car a couple years ago. and now Im selling it for 7k. do I need to pay tax on 7k profits?
Hi thanks for sharing this info. Do i need to report foreign gifts if it does not go over 16k per person. Thanks
My question is how much people can give you money and it be ok? Like can all my relative gift me 10k and the total is 100k still be ok and wouldn’t be a problem with the bank or irs? Getting ready to buy my first house after graduation
My brother recently passed February 2023. He was hurt at work in 2012 and awarded a large insurance payment. As we wait for courts to free up the large portion of estate, my sister and I have bills our parents no longer have, our parents decided to help my sister and I by giving us the proceeds from the sale of the house which was $1m. $500k was split between my father and my sisters mother as they had guardianship. Her mother will give her $500k - my father will give me $500k ...This is inheritance money so our parents do not need to pay taxes, however my father mentioned we may have to - which brings me to this video... What is your suggestion on how to pay least amount of taxes? I was told parents can give loans under $10k multiple times (possibly unlimited amount of loans under $10k) without having to notify IRS nor show if the loan was repaid...
Q1: would this be the best way? Each parent loan us $9,500... or $7500 every week up to the 500k? or should it be separated further into 2 or every 3 weeks? Maybe start off with giving first $100k gift and fill out form 709 as you said in your video, then move to $9k payments?
Q2: My brothers estate was worth $15m - My father and his mother are divorced so she gets $7.5m and my father $7.5m ...if I followed what you said in this video... with each parent estate being under that 12m you mentioned... both fall under that lifetime estate exclusion? when passed down to us, we would not have to pay taxes?
My goal is to invest every penny after I pay off $2k in outstanding bills, and buy a used truck. I want to live off the dividend payments from investments. any help on this would be greatly appreciated
For Oregon I heard they don’t have a gift tax what does that mean
what if i send gift for cousins/nieces > can i tax return this? does it matter if they live in australia or overseas?
Question:
Say for example: I may make 100k a year... I generally pay Income Tax on $88,500 due to a standard deduction. I'm liable to pay the taxes for $88,500.
If I gift $6,300 to pay my nephews car bill for the year, I don't pay gift tax, but am I still paying taxes on the $88,500 after my standard deduction?
Here's the math in my head...
$6,300 (gift) / 7 = $900
$900 X 10 = $9000 (income)
$9,000 X .30 = $2,700 Taxes based on Income Tax before I give the gift (I always assume 30% in total).
Is this correct? Basically, do I need to pay taxes on the income before I give the gift? Or when I give the gift it almost becomes tax deductible?
Is the IRS Form 709 difficult to complete? I have one transfer of stocks only and would like to save hundreds to have a firm help assist for me.
I am in Canada I am a newspaper carrier I do not get paid by hour no taxes are taken off my checks I received money in Christmas cards from customers that they leave for me in mail boxes I do not need to report it on income tax its between customers and me can you respond
in giving a gift of a 4 year old car to my daughter, do i have to file papers other than signing over the title?
Very informative, So if my mom gifted me and my spouse 80K in cash, who will be filing the 709 form? The giver or the recipient?
Like he say in the video the giver
HI Jason, very nicely presented, Thanks so much. Can you please clarify if i want to gift a property to my Mom in India who is not a US Resident. how do i report that , say the property is 100K. I am giving the apartment that i owned as a gift to my Mom
Hello. Quick q. What if your parents pay directly your credit card entity such as American Express? Would that go toward the “unlimited” tax exclusion?
Not if your gift exceeds the yearly gift allowance per person set forth by the IRS
So if I receive a gift in the US from my parents who live overseas, what is the limit on the amount of that gift, and do I need to file form 3520 regardless of the amountt? What if I were to get a gift in the US from a US person, what is the limit and then do I have to report that gift? For the year 2024
If you have an asset in an account (other than an IRA or 401) with a beneficiary the asset isn't part of your estate when you die. It is transferred to the beneficiary with no tax.
Great video, does the life time exclusion apply if I gift to siblings or friends?
Only if the gift exceeds the yearly gift allowance set forth by the IRS
Really clear, tx
Thank you ! very nice!
I bought a $5000 lawnmower for my son. I put it on Capitol one credit card for the points. I will pay it off next week. Can I take this as a gift tax exclusion?
Can I gift the max for that tax year to the same person every year?
When a parent gifts 17K (in 2023) to a child, does the parent show that expense in tax liable income? Does 17K directly deducted from tax liable income in 2023?
So, I guess it doesn't matter, tax- wise, whether you give your adult kids 16k per year or make them wait to inherit your estate? And is the estate tax different in each state?
Unless you got a crazy estate. Yes estate tax and rules differ state to state
What if the company you work for gifts you a car worth over $15,000 and then you sell it, does the recipient have to pay income taxes on that the following year?
You have to report the FMV of the gift to IRS. This is considered a compensation to you. So once you pay taxes on that, and you sell the car for the same price you report no gain
Thank you for the information. May I inquire if I need to pay tax when I, as a green card holder, gift $350k to my husband who is a U.S. citizen? Additionally, I reside in California. Would there be any state tax implications? Thank you
Hi Hello
i saw something on the internet? You can give your sibling up to $5.4 tax free is that true? Thanks
So how much taxes you pay if you give pass the 12 million limit????
Can give a gift the the same persons every for the next 20 years if I stay below the maximum for each year?
What about a home if a relativa wannts to give a home ro their child.
Can I gift the maximum amount for that tax year to a friend for their life span?
If a parent gives a kid $200,000 in cash and they put it in a safe there is no trail and when you get audited say you lost it at the casino
How does this work if one's parents are not US citizens and are also not US residents? Would I be paying taxes on gifts they give me?
Great question I would also like to know the answer to.
How do parents outside the US pay tax for the gift above $32,000?
You may want to look at Form 3520
This falls under the foreign gift topic that he discussed. You would have to disclose it since they are not US citizens, but there wouldn't be any tax liability.
If I gave my relative a big gift on January 1, 2022 when would I have to file the gift tax? Thanks
2023 of course
My wife recently cashed in her 401(k), with 20% in taxes automatically being deducted. After we paid off all of our debts, we transferred the remaining $40,000 into my savings account. My wife and I share finances, and we file “married filing joint“ every year on our tax return. The $40,000 is technically both of ours, but the savings account is only in my name… My wife already paid taxes on the remaining $40,000, but will it look suspicious if that money is now in my savings account when it comes time to file taxes? I understand I will have to pay taxes on any interest that money earns in my account, but will we have to pay taxes on the $40,000 again?
If someone receives a million dollar gift from parents to down pay the mortgage loan for closing and write a gift letter to the bank.
Do parents need to pay the federal tax? Even you write the 709 life time tax form ? It seems like your video explains only deducting the state tax amount. Please explain if possible thank you
Did u ever figure out the answer to your question ? I’m closing on a house and my mother is gifting me a certain amount and I want to know
@@kikicardenas6048 Hire a real estate tax cpa or attorney to answer that for you?
The giver doesn’t need to pay the federal tax unless they have given more than $12.92 million during their lifetime. They just need to file the form. That’s my understanding.
So if i earn 100k and gift my child 15k i still pay income tax on the 100k or is my income tax now based off 85k?
100k because that’s all earned income.
basically
you can’t get credit deduction
gifting the amount
You get a tax reduction don’t you? You don’t drop a bracket but you should be able to say that’s paid taxes right?
so I'm giving one of my sons 10,000. and my yearly income is 46,000. does that mean that my taxable earned income now is 36,000. . what form do I have to use for the IRS?
Bo, your taxable income has nothing to do with gift tax. You pay taxes on your taxable income and once you do it , you can gift your son 10,000.
if your mother gives you 5 acres of land that was bought for 15000 but now worth 75,000 do you have to pay gift tax on that land?
If u give money to ur friend, how they IRS know that its a gift and not for work done?
My friend purchased a home for his child in 2018 but didn't know about the gift tax. Can he still file for the gift tax this year 2023?
Lmaooooo, I can see why they hired thousands more IRS agents.
I think if he doesn’t go over 12 million it’s not a big deal if he reports it later. There’s no tax untiil after 12 mil
Can my 85 year old mother mother give a $3.3 million house to her nephew in 2022 and use IRS form 709 so neither one has to pay any taxes? This 3.3 million will then be deducted from her lifetime exemption of $12 million.
that is what I'd like to know too
Great video but I wish you would keep up with the questions/comments. I would have subscribed if I saw you responding to your viewer’s questions. Hope my comments helps your channel in some way.
What if the gifted just doesn’t file a 709 form?
it’s the gitfter/giver who has to file the form, but really, if the giver total estate/money is far from $12 million , then the giver will never pay taxes on any of the money given away.
So if I received a 15k cashier check gift that I deposited do I have to report it?
Report it as...income?
@@NguyenCPAs yes as income when I file my taxes.
can my married friend, gift hers car and her married friend gift her a check? each gift under 34k of course for 2023.
What if I buy it for myself then sell it to someone for $50?
So if i had 100 million dollars when i die only 12 million wont be taxed and the other 88 million will be taxed again at the max rate ???
Indeed. If you did no estate planning
@NguyenCPAs is there anyway around this ive searched and found no way
So legally speaking if I give a service away for free but the other party wanted to gift me $1000/m "just because" it's legally tax free or it doesn't work that way lol
Hello, If I give my father 20K as a gift do you know if I can write them off ? thank you and have a great day
4k goes towards the counter of your 12 million dollar limit before you would need to pay tax on it I think
My sister wants to give me a large gift to buy a house. She lives in Europe and has money. I don't have money so she wants to give me a gift to buy a house. somewhere around 800k. is that still ok? you know the amount so large? I think it's large to me because I've never had more than 40k in my savings. lol
Damn ik im late so let’s say i win the lottery right and I wanted to give away 5 millions dollars to 10 people, so 50 million right. How much would I pay on gifting out 50 millions dollars
We would like to know where joe biden got his foreign money too
If I add my best friend in my second hand car title along with my name, as joint tenants with right of survivorship, is this considered a gift? If so If full car costs around 17000$, then 17000$ is gift amount? Or 17000$/2 is gift amount?
Wow oh wow, the IRS sounds god awful.
How to finish this bad cock roach?
wicked
Hi Ryan do you have a what’s up #
Nah dawg
It's 60 thousand not 16