Is money I receive as a gift taxable?
Gifts are not taxable to the recipient, but instead are subject to tax to the giver. Moreover, a taxpayer can give away as much as they want. Yet once they have given over $1,000,000 in “taxable gifts” during their lifetime, they have to start paying a gift tax. However, the IRS currently allows a taxpayer to exclude up to $14,000 per person each tax year before it is considered a “taxable gift” and they are required to file a gift tax return. Therefore, a taxpayer could give away $104,000 to 4 children and their spouses (8 people x $13,000 each) in one year – $208,000 within 2 days if they give away $104,000 on December 31st and $104,000 on January 1st without having to file a gift tax return.