Any Tax Experts Here?

[Trampled Underfoot]

I have some money coming to me from a relative from a recent death in the family. However, I was not directly named in the will so the money will come directly from a family member. Was curious if the IRS could possibly tax me from this payment from a family member. Anyone have any idea?
Thanks

 

[yyz]

Anyone can receive up to $10,000 a year from someone else, without it being taxed.

 

[taoist]

...make that $11,000 as of this year. This falls under the annual gift tax exclusion.

...depending upon the amount, you might want to seek some tax advice from a qualified professional. Remember, if you don't file a gift tax return and claim the funds as exempt, the statute of limitations never starts running and the IRS can come back and get you years down the road. As soon as you file the return, the statute begins to run and if I remember correctly from my exam the other night, the statute of limitations is 3 years.

...if this is a substantial amount of money, i would definitely seek legal and or accounting advice so as to avoid future troubles....

p.s. Sorry to hear of the death in your family.... Thoughts and prayers go out to your family.

 

[Trampled Underfoot]

Thanks for the reply and prayers.

Its $9,000 that I am receiving so it looks like I am okay. Do you only have to file that 'gift tax return' if its over the 11K?
Thanks again for the help.

 

[taoist]

...sorry for the confusion. i guess i didn't read your initial post as clearly as i should have.

...the giver, not the receiver, has to file the gift tax return and has to pay the gift tax, which in this case would be $0 because it falls under the annual exclusion of $11k. now, the person that gifted this to you isn't required to file a return since it is less than $11k; however, like i said before, if they don't file a return, the statutre of limitations never begins to run. so, the safe thing to do is for the giver to go see an accountant and file the return. this is especially important if they plan to gift you anything else in the same year. the 11k is combined gifts for one year....

...hope that this clears things up and helps you a little. i'm certainly no tax expert, by any stretch of the imagination!!! you might want to consult with your accountant just to be on the safe side.

 

[Trampled Underfoot]

taoist,
Thanks for the assistance.