Gift Tax Explained - Do You Pay Taxes On Gifted Money?

In this video, I explain what gift tax is all about. Do you need to pay taxes when you receive a gift? Do you need to pay taxes with giving a gift? Those are both important questions I answer in this video. Also, how does estate tax work? That's related too!

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This video is for entertainment purposes only. The information portrayed in this video should not be considered as tax or legal advice. Consult with your own tax professional and attorney to get proper advice for yourself.

[NguyenCPAs]

Receive an insane gift lately? Let me know below!

[meganobrien]

This was so helpful for my situation! So hard to find this clearly explained. Thank you!!

[cwilliams]

Excellent information and I love the humor!

[charleshenry]

Thank you! Veryy clearly presented. I appreciate your time.

[boyboy-xerx]

And any years we exceed annual yearly gift tax exempt amount, we just only need to fill IRS Form 709, do not need to do anything else to let IRS know  we would like it to be deduced from life time exclusion amount and do not worry about paying gift tax as long as we did not exceed life time estate exclusion amount which I guess is $12.92 million in 2023.
Is my understanding correct?

[CindyYangLee]

Thank you!!! This was exactly what I was looking for.

[awake]

This was a very clear explanation of the gift/estate tax. I glad I watched it.👍👍

[andrewx]

So unless someone gives away more than 12 million dollars n their life there’s no tax. that be 24 million for a couple. They only requirement is filing a 709 form which the irs uses in tracking your total. Question: How long has the gift tax been this way, linked to the estate? Was it different a few years ago where any gift over 14k or so was taxed?

[chuuniniruka]

Very helpful explanation. Love your energy. Thanks!

[qt]

ty, i was looking for this answer n explanation!

[MGHT_is_RGHT]

My brother recently passed February 2023. He was hurt at work in 2012 and awarded a large insurance payment. As we wait for courts to free up the large portion of estate, my sister and I have bills our parents no longer have, our parents decided to help my sister and I by giving us the proceeds from the sale of the house which was $1m. $500k was split between my father and my sisters mother as they had guardianship. Her mother will give her $500k - my father will give me $500k ...This is inheritance money so our parents do not need to pay taxes, however my father mentioned we may have to - which brings me to this video... What is your suggestion on how to pay least amount of taxes? I was told parents can give loans under $10k multiple times (possibly unlimited amount of loans under $10k) without having to notify IRS nor show if the loan was repaid...
Q1: would this be the best way? Each parent loan us $9, 500... or $7500 every week up to the 500k? or should it be separated further into 2 or every 3 weeks? Maybe start off with giving first $100k gift and fill out form 709 as you said in your video, then move to $9k payments?
Q2: My brothers estate was worth $15m - My father and his mother are divorced so she gets $7.5m and my father $7.5m ...if I followed what you said in this video... with each parent estate being under that 12m you mentioned... both fall under that lifetime estate exclusion? when passed down to us, we would not have to pay taxes?
My goal is to invest every penny after I pay off $2k in outstanding bills, and buy a used truck. I want to live off the dividend payments from investments. any help on this would be greatly appreciated

[phillip]

It depends on the information. I hope that as you do this more, you will get better at the transition between the information.

[boyboy-xerx]

Very nice explanation. Very helpful. Thank you.

[neeky]

Can you please explain the foreign gift money and taxes please?

[raymondjoseph]

So if i earn 100k and gift my child 15k i still pay income tax on the 100k or is my income tax now based off 85k?

[rayarellano]

Very informative, So if my mom gifted me and my spouse 80K in cash, who will be filing the 709 form? The giver or the recipient?

[psdaengr]

If you have an asset in an account (other than an IRA or 401) with a beneficiary the asset isn't part of your estate when you die. It is transferred to the beneficiary with no tax.

[Oregonluver]

My question is how much people can give you money and it be ok? Like can all my relative gift me 10k and the total is 100k still be ok and wouldn’t be a problem with the bank or irs? Getting ready to buy my first house after graduation

[beerguyflake]

Curious, if one is the recipient of go fund me ( medical bills) do they have to paid taxes?

[zhang_han]

How does this work if one's parents are not US citizens and are also not US residents? Would I be paying taxes on gifts they give me?