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    ajc's Avatar
    ajc Posts: 4, Reputation: 1
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    #1

    Nov 23, 2005, 02:25 PM
    Ajc
    My wife received about $6,000 from her father after he sold his home as was mandated in a divorce settlement from several years ago as a way for the kids to split what they parents had jointly invested. Do we need to claim this as a gift or income on our taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 24, 2005, 08:42 PM
    AJC:

    Since it is a gift, you do not have to claim the $6,000 as income.

    Further, the $6,000 is well below the annual $11,000 gift exemption, so your wife's father does not have to report it as well.

    Both of you are home free. Spend or invest the money as you wish.
    ajc's Avatar
    ajc Posts: 4, Reputation: 1
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    #3

    Nov 25, 2005, 05:51 AM
    Thank you for all your help on my questions.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Nov 26, 2005, 10:01 AM
    That's what we are here for!
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