Quote:
Originally Posted by Apache
You legally have to pay taxes on gifts in the US. Also gambling earnings and on merchandise won through contests. The IRS also expects you to pay taxes on any illegal activities. Much to the chagrin of Al Capone. 
Apache
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I was thinking of the gifting rule exception:
Quote:
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The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts. Gifts that are not more than the annual exclusion for the calendar year.
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And the current annual exclusion is $17,000. And I thought that the receiver didn't have to pay the tax (if any).
Edit: and I forgot a link:
https://www.irs.gov/businesses/small...-on-gift-taxes
And my understanding is that more then $17,000 can be gifted at once, the gifter just needs to report it on a tax form, and doesn't pay any gift tax until the lifetime limit of $12,000,000 is exceeded (as of 2023).
It seems like a very favorable (to the givers/receivers) tax law.
