Ask Experts Questions for FREE Help !
Ask
    gwenzielke's Avatar
    gwenzielke Posts: 1, Reputation: 1
    New Member
     
    #1

    Dec 1, 2009, 08:44 AM
    Gifting money to children 2009
    We would like to get 20,000 dollars from my husbands mom. She will be taking this out of her IRA. Can you tell me how we go about this? She can gift each of us12,000 correct? Will she still have to pay taxes on that?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #2

    Dec 1, 2009, 08:56 AM

    First, respect to taxes on the gift - there are no tax issues as long as she makes the $20K check out to both you and your husband, or she could send two checks each for $10K - one made out to you and one to your husband.

    Your mother in law will of course have to pay income taxes on her withdrawal from her IRA. Depending on where she lives, she may have state and/or local income taxes as well.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Monetary Gifting your children [ 3 Answers ]

1) What is legal monetary gift maximum per year per person that is legally tax free? 2) What do we need to do to gift my child with the property that she currently lives in now but which is on my husbands and my name -- without paying any gift taxes? What forms we need to fill out, etc?

Gifting Money to Children [ 3 Answers ]

I live in Florida and need to know how much I can give a child without them paying taxes on it.

Gifting money to children [ 1 Answers ]

I am selling my home in AZ but will be moving to MN. I want to gift the money from the sale of the house to my children. I want to know what I need to do at the immediate sale and how much I am allowed per child for the year 2009?

Gifting money overseas [ 5 Answers ]

I am planning to send money from my US Account to "my" account in a foreign country (I understand that I have to file Form FBAR). Then, I am going to gift money to my mom who is living in a foreign country. 1) Am I subject to any tax in the US? 2) In case I am subject to a gift tax in the US,...

Gifting money to children w/out taxes [ 4 Answers ]

How do I gift money to my children without paying taxes?


View more questions Search