Receiving a monetary gift and need advice.

Jul 21, 2007 3 Replies

A friend of mine came into a large sum of money from a legal suit and is planning on giving me $25,000 as a gift.



I'll be using the money (along with mine) to start a web-design business. The money will come in a check.



Right now, the money is not being considered an investment. It's purely a gift. Regardless, it does not need to be repaid.



I honestly don't know if taxes have been paid on the money (if that even matters).



Can someone please help guide me in the right direction in depositing this money in the proper way to not be eaten alive on taxes?



ALSO, this is implied, but the GIVER is not related, nor will be involved in the business.

wrote

Gifts received are not taxable income.

Enjoy.

Just send me the money and I will take care of everything.

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