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All About Gift Taxes: Do I Pay Tax on Gifts From Parents?
Source:
finance.yahoo.com
- Nov 29, 2018
If you recently received a sizable gift from mom and dad, don’t fret. When it comes to gift tax, the IRS generally holds the giver liable. And unless the person is handing over a small fortune, he or she won’t owe any gift taxes either.
But if your parents are being generous, you might want to fill them in on how the IRS may look at that. This article would help you understand all about the gift tax. But because rules behind calculating gift tax can be complex, your parents should find a financial advisor if they might trigger a tax bill.
For tax year 2018, an individual can give up to $15,000 per person without catching Uncle Sam’s attention. But even if your parent breaches that level, he or she may just need to file some paperwork. Your parent generally won’t owe an actual out-of-pocket tax payment unless gifts for the year him or her beyond the lifetime gift tax exclusion. For tax year 2018, it stands at $11.2 million ($22.4 million if married filing jointly). It rises to $11.4 million in 2019 ($22.8 million if married filing jointly).
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Category: General Business
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