Taxing on cash gifts? - Tilted Forum Project Discussion Community

Jim Kata · 04-03-2006, 10:47 AM

I am getting married this weekend and expect a very large amount of cash gifts...i mean over $20,000. Is there a legal way of depositing this money (that we are going to put towards a house), without getting taxed like a motherfucker on it? Right now we have 3 bank accounts. Hers, mine, and ours.
I remember on the Sopranos, Carmella gave $9,900 for investing purposes and the person she gave it too said something along the lines of "You are under the $10,000 limit of us having to report this to the IRS" or something along those lines. Does this fall into the same category or was that all Hollywood BS?

Any advice, suggestions, and whathaveyou are appreciated.....as always.

Thank you in advance.

The_Jazz · 04-03-2006, 11:20 AM

The $10,000 limit is for individual transfers. So if one person gives you the $20,000, then the feds will have to know about it. If it's spread among a bunch of people (which is what I would expect), then you shouldn't have that sort of problem.

The IRS is not the one that tracks the large transactions, by the way. It's the Justice Department. They're looking for evidence of money laundering. If you're still worried, then just split the amounts among your 3 accounts and then consolidate them later.

Congratualtions, by the way!

DDDDave · 04-03-2006, 08:06 PM

Congrats.

Deposit it anywhere you want in any amount.

I am assuming that most of your (rich) friends will be giving checks and not greenbacks. With all those different checks there should be no issue with the $10,000. limit. That only applies to cash.

It sounds like you think there may be some sort of tax due by you. There will be none. Taxes are paid on income, not on gifts.

Where are you going on your honeymoon?

NoSoup · 04-03-2006, 08:26 PM

To my knowledge, you shouldn't have an issue.

Cash gifts can be taxable, but I believe that is only the case if you recieve a large sum from a single person, not many smallers sums from a number of people. I'd call a local accountant to be sure, but I'm 99% sure that's how it works.

I'd comment on the $10,000.00 thing, but as a former bank employee I'm not certain of the legalities surrounding it...

Good luck, and congrats!

Jim Kata · 04-04-2006, 07:23 AM

Thanks for the info and the congrats.

Honeymoon is in St. Thomas.

We will just put it in our joint account.

Thanks again.

gar1976 · 04-08-2006, 08:29 PM

Quote:

Originally Posted by Jim Kata

I am getting married this weekend and expect a very large amount of cash gifts...i mean over $20,000. Is there a legal way of depositing this money (that we are going to put towards a house), without getting taxed like a motherfucker on it? Right now we have 3 bank accounts. Hers, mine, and ours.
I remember on the Sopranos, Carmella gave $9,900 for investing purposes and the person she gave it too said something along the lines of "You are under the $10,000 limit of us having to report this to the IRS" or something along those lines. Does this fall into the same category or was that all Hollywood BS?

Any advice, suggestions, and whathaveyou are appreciated.....as always.

Thank you in advance.

$10,000 cash transfers are now required to be reported to the feds for sucurity purposes - this is not a taxable event.

You can be given gifts of up to $12,000 per "gifter" without creating a taxable event each year. Even if the gift was over $12,000, you would not pay tax, the grantor would.

Married couples can "gift split" as well, so your parents could give each of you $24,000 without creating tax problems.

raeanna74 · 04-10-2006, 05:06 AM

Congrats to you both. Have fun.

Wish I knew the people you know. The total cash gifts for our wedding and engagement wasn't more than $1,000. You know the RIGHT people.

Mister Coaster · 04-11-2006, 06:08 AM

I'm going through the exact same thing, (mom is selling her house and wants to give us a quarter of the sell price) and the limit is $12,000 per person (the person giving the money) to any one person. As long as any single gift is not over $12,000, then you're good. Even if any one person wanted to give you $20,000 that could still happen, they could give you $10,000 and also give her $10,000.

Jim Kata · 04-11-2006, 08:47 AM

Quote:

Originally Posted by raeanna74

You know the RIGHT people.

We have a huge close family.

04-03-2006, 10:47 AM	#1 (permalink)
Jim Kata Swollen Member Location: Northern VA	Taxing on cash gifts? I am getting married this weekend and expect a very large amount of cash gifts...i mean over $20,000. Is there a legal way of depositing this money (that we are going to put towards a house), without getting taxed like a motherfucker on it? Right now we have 3 bank accounts. Hers, mine, and ours. I remember on the Sopranos, Carmella gave $9,900 for investing purposes and the person she gave it too said something along the lines of "You are under the $10,000 limit of us having to report this to the IRS" or something along those lines. Does this fall into the same category or was that all Hollywood BS? Any advice, suggestions, and whathaveyou are appreciated.....as always. Thank you in advance.

04-03-2006, 11:20 AM	#2 (permalink)
The_Jazz Asshole Administrator Location: Chicago	The $10,000 limit is for individual transfers. So if one person gives you the $20,000, then the feds will have to know about it. If it's spread among a bunch of people (which is what I would expect), then you shouldn't have that sort of problem. The IRS is not the one that tracks the large transactions, by the way. It's the Justice Department. They're looking for evidence of money laundering. If you're still worried, then just split the amounts among your 3 accounts and then consolidate them later. Congratualtions, by the way! __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo

04-03-2006, 08:06 PM	#3 (permalink)
DDDDave Addict Location: Sarasota	Congrats. Deposit it anywhere you want in any amount. I am assuming that most of your (rich) friends will be giving checks and not greenbacks. With all those different checks there should be no issue with the $10,000. limit. That only applies to cash. It sounds like you think there may be some sort of tax due by you. There will be none. Taxes are paid on income, not on gifts. Where are you going on your honeymoon? __________________ I am just a simple man trying to make my way in the universe... "Go confidently in the direction of your dreams. Live the life you have imagined." - Thoreau "Nothing great was ever accomplished without enthusiasm" - Emerson

04-03-2006, 08:26 PM	#4 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	To my knowledge, you shouldn't have an issue. Cash gifts can be taxable, but I believe that is only the case if you recieve a large sum from a single person, not many smallers sums from a number of people. I'd call a local accountant to be sure, but I'm 99% sure that's how it works. I'd comment on the $10,000.00 thing, but as a former bank employee I'm not certain of the legalities surrounding it... Good luck, and congrats! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

04-10-2006, 05:06 AM	#7 (permalink)
raeanna74 I'm not a blonde! I'm knot! I'm knot! I'm knot! Location: Upper Michigan	Congrats to you both. Have fun. Wish I knew the people you know. The total cash gifts for our wedding and engagement wasn't more than $1,000. You know the RIGHT people. __________________ "Always learn the rules so that you can break them properly." Dalai Lama My Karma just ran over your Dogma.

04-04-2006, 07:23 AM	#5 (permalink)
Jim Kata Swollen Member Location: Northern VA	Thanks for the info and the congrats. Honeymoon is in St. Thomas. We will just put it in our joint account. Thanks again.

04-11-2006, 06:08 AM	#8 (permalink)
Mister Coaster Big & Brassy Location: The "Canyon"	I'm going through the exact same thing, (mom is selling her house and wants to give us a quarter of the sell price) and the limit is $12,000 per person (the person giving the money) to any one person. As long as any single gift is not over $12,000, then you're good. Even if any one person wanted to give you $20,000 that could still happen, they could give you $10,000 and also give her $10,000. __________________ If you have any poo... fling it NOW!