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Someone gave me a large sum of money as a gift. Do I have to pay taxes on it?
Usually the person that gives the gift (donor) is responsible for gift taxes. For example, if someone decides to give you $50,000 you will not have to pay taxes as a result of the gift. The person giving you the money will have to pay the taxes. However, there are guidelines to consider with any gift tax exclusion. Here is an overview of those guidelines.
You may not have to pay taxes for the money that is given to you. However, if is something like stocks that can earn income, you are responsible for that income. It will have to be claimed on you annual return.
If someone is planning to give you a large amount of money, they should be aware of several factors. These factors may keep them from paying additional taxes.
When someone gives you a large amount of money, you do not pay gift tax. However, a gift of stocks, for example, that can earn income, has to be claimed. Make sure that someone giving you money knows the gift tax exclusion rules. Any time that you are unsure, it is best to consult an attorney in the matter. He or she has the knowledge and experience to help you.
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