Money!!

[~Laura and Nick~ 5]

Hey guys,

I have a quick question.

My parents plan on giving Nick and I a considerable amount of money.

They already gave us about 20K before we bought our house, and I don't know if we will be taxed on that or not.

We are totally reno'ing our new home and they are giving us more.

How do they go about giving us the money without it being taxed?

Can we do it in small amounts?

Any advice would be greatly appreciated.

[Sprailenes 47]

The donor is usually responsible for the gift tax, not the one receiving the gift. Anything under 10,000 is not taxable.

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

[ashenflowers 5]

Did they give the other money in 2009? or is it all in 2010? One thing they could consider is giving 1/2 to you, and 1/2 to your husband. My father in law is helping us out that way. Once we reach the 'max' for gifts to my husband, he's going to give to me (on paper at least). And yes, the giver is the one taxed, as far as I understand it.

[BlueBonnet 84]

Ive been looking into -- how to get my money out -- Ive talked to my bank, here are some suggestions.

bank account ( from ) - paypal - bank account ( to )

money orders under 9999.99

Visa/prepaid credit card

bank account - Bank of America apparently allows you to withdraw from a Canadian bank acct ( I dont know, Ive never tried, I have a Canadian friend, Living in Texas, this is how she gets her baby bonus cheques out of canada )

I hope that gives you some ideas

[~Laura and Nick~ 5]

The donor is usually responsible for the gift tax, not the one receiving the gift. Anything under 10,000 is not taxable.

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

Thanks so much honey!

Who will be taxing my Parents? The American government? My Dad wired the money in 2010 from his Canadian Account to my American one.

From now on, he will give us the money in $5,000 increments.

Thank you again

[~Laura and Nick~ 5]

Oh and another thing...is that not being taxed on amounts under 10,000 total for the YEAR or per transaction?! If my parents give us a total of 60K in 2010 but in increments under 9999.00.....will they still tax us?

[Wyatt's Torch 45]

I can't really answer the question, but...

Can I have your parents? Please?

[Flames9_RN 358]

if its the cdn parents, dont think u get taxed on that, I know I didnt when my parents gave us $$$. the magical # of keeping it under $10,000 I belive has nothing to do with taxes, but amounts over $9999 supposedly set off alarms with regards to money laundering.

[ashenflowers 5]

I can't really answer the question, but...

Can I have your parents? Please?

No doubt!!

[darkchilde794 5]

My mom gave us a big chunk of change as a wedding gift last year. I dont think she got taxed. And if she did, it would be the Canadian government who will do the taxing.

And back in my student days, I would bring 9k in the US each time I came back from school break, and I never had to declare it, so in a sense, I did not get taxed either... I don't know how it works if you are sending money from the bank though... they might have to pay for the transaction fee each time.

Edited March 27, 2010 by darkchilde794

[Udella&Wiz 325]

Another way they could do it would be to pay the renovation bills, no? I don't know if there are tax implications from paying them or not, just a thought.