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Old 09-27-2013, 01:29 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,298 posts, read 17,497,824 times
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Quote:
Originally Posted by TimtheGuy View Post
There is no gift tax for the person receiving the gift nor is it counted as income. So, the OP would have no tax implications at all. Your FIL may have to fill out a gift return if he gifts more than $28k. As posted above, your MIL & FIL can each gift $14k each to you and your spouse in 1 year, so $56k. Even if your FIL goes over the $56k, it doesn't necessarily mean he is going to get hit with gift tax. A person has a life time gift of like $5mil. So he can gift $100k right now with no tax, but it would come off his lifetime tax free gifting amount.

I am not an accountant, but this is how I understand it.
Yep, that's the way it works. But the forms HAVE to be filed.
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Old 12-20-2013, 05:34 PM
 
2,563 posts, read 2,590,650 times
Reputation: 3465
Quote:
Originally Posted by TimtheGuy View Post
There is no gift tax for the person receiving the gift nor is it counted as income. So, the OP would have no tax implications at all. Your FIL may have to fill out a gift return if he gifts more than $28k. As posted above, your MIL & FIL can each gift $14k each to you and your spouse in 1 year, so $56k. Even if your FIL goes over the $56k, it doesn't necessarily mean he is going to get hit with gift tax. A person has a life time gift of like $5mil. So he can gift $100k right now with no tax, but it would come off his lifetime tax free gifting amount.

I am not an accountant, but this is how I understand it.
Yes. There's now a unified lifetime gift tax exemption or credit? of $5 million. The giver needs to file a return and claim the gift as part of the $5 million.
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