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    arosedolly's Avatar
    arosedolly Posts: 1, Reputation: 1
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    #1

    Apr 22, 2009, 03:14 PM
    Large amount of money given to me as gift
    I have a elderly man who doesn't have children or a spouse who is a good friend of mine. He has a farm and was going to will it to me when he dies but instead he decided to sell it now so he can enjoy the rest of his days. He is now wanting to give me as a gift a very large amount of money. What should I do when He gives this to me? Can he give me a gift that is very large? Are there any laws against this? How much tax will there be?:confused:
    contraryone's Avatar
    contraryone Posts: 7, Reputation: 1
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    #2

    Apr 22, 2009, 03:21 PM

    I believe any amount over $12,000 have to have taxes paid on them.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Apr 27, 2009, 08:56 AM

    You have no tax consequences personally if this man gives you a gift, even if it's quite large, and especially if he gives you cash. If he gives you property (real estate, stocks, bonds etc) then you do have a little record keeping to do, as you will need to know both the current fair market value of the property as well as his original cost basis - this is so when you eventually sell the property you know what your cost basis is. As for taxes owed now - he may have an issue with having to file a gift tax form with his income taxes, and depending on the value of the gift there may be estate planning consequences for him. But that's something he would have to contend with, not you.
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