Hello, each year I receive about $25,000 from parent.
Parent reports it and pays a tax on it.
Am I required to do the same? Thanks in advance.
- posted
12 years ago
Was given $25,000 by parent. Is it taxable?
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- posted
12 years ago
No. Gift taxes are paid only by the giver, not the receiver.
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- posted
12 years ago
Are you performing any services in exchange for the money or is it a true gift?
If it is truly a gift to you, then no, it is not taxable to you. In fact, you don't even report it anywhere.
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- posted
12 years ago
In addition, are you receiving cash or stock? If stock and they pay gift tax then that increases your cost basis.