We should all be so fortunate to have a loved one write us a check for a nice sum of money. It could be out of love or just because their tax professional advised them to do so. Regardless of the reason, are you obligated to pay taxes on that money? Not at all! The good news is that the recipient of the gift doesn't have to pay any taxes on it. - However, beware that the same doesn't apply to the person giving the gift. The IRS has set limits on how much one individual can give to another during a single tax year. Therefore, if you're the one giving the gift, you need to be mindful of these limits. - On the bright side, the recipient of the gift will never be subject to any taxes on that money. It's a relief for them, right? It's always advisable to discuss your specific situation with a tax professional, who can provide personalized advice based on your circumstances. - In the end, it's your money, so why not keep it safe in your wallet? Remember, taxes can be complicated, so it's crucial to stay informed and seek professional guidance when necessary.
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Video instructions and help with filling out and completing Can Form 3520 Receives
