How much are you allowed to receive as a gift without having to claim it on your income tax form?

ANSWER

Expert Michael Lim's Answer:

Gifts are not taxable to the recipient.  As long as it is a true gift (i.e. not compensation for any good or service rendered), or loaned with the expectation that it is to be repaid, then you may receive as large a sum as you want without having to claim it on your income tax form.

On the giving person's side, they will have to file a gift tax return, if the amount exceeds the annual exclusion amount ($13,000 in 2010).  However, this amount reduces their lifetime gift exclusion amount of $1.0MM, and unless this full exclusion is used up, they will not have to pay any taxes.

Michael Lim, CPA

California

16 yrs experience

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