monetary gift

$12,000 per person combination. e.g. a couple may gift their married child (and spouse) 4 x $12,000 = $48,000.

Only the amount over is an issue. Either gift tax must be paid or a credit against one's lifetime gift exemption.

JOE

Gifts, regardless of amount or source, are not taxable income to the recipient. See Publication 525. Gift tax is the responsibility of the donor, not the recipient. The 2007 limit for gifts exempt from gift tax is $12,000 per donor/recipient.

-- Phil Marti Clarksburg, MD

You can RECEIVE any amount as a gift, and you do not have to pay tax on it. There is no limit. The person who GIVES the gift has to file a gift tax return, and may have to pay gift tax as joetaxpayer described, if they give more than $12,000 to any one person. Bob Sandler

There is no limit to the one who receives the gift. The limit for the donor is $12,000 per person, per year without filing a gift tax return. If a couple whats to gift a married child money they can gift the couple a total of $48,000 per year as the rule is any one person can gift any one other person $12,000 per year. Missy Doyle

"Ken Hansen" wrote

It depends on who receives the gift. Me, I'd not have to pay tax on the first billion or so. Well, actually you wouldn't either. Gifts (for the most part) are not income to the recipient no matter how large they are. The person making the gift may be liable for filing a gift tax return for any annual gifts to a single individual when that amount exceeds $12,000 (for 2006).

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net