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There is a lifetime $5.49 million exemption from the gift tax. Gifts above $14k are taxed. If you gave me $30k this year, you would not have to pay any taxes on
by tssva 9y ago
There is a lifetime $5.49 million exemption from the gift tax. Gifts above $14k are taxed. If you gave me $30k this year, you would not have to pay any taxes on it but your $5.49 million lifetime exemption would be reduced by $16k.
- drawkbox 9y agoWow never knew that. I always thought the person receiving the gift had to pay taxes on any amount above the gift tax rate per year if the tax wasn't paid by the giver i.e. 14k currently. Basically then any money you receive or earn is taxable except loans and gifts up to the gift tax limit, all other money movement is taxed. Of course winnings are still taxed at normal rates because that is income not gifted per se, I guess I was conflating the two. Example: If you win a car you owe taxes on the whole thing. So essentially it is the same limit as the estate tax, so I wonder if that also doubles and also goes away in the tax bill.