are gifts of cash taxable?

[frank]

If you gift someone in your extended family a gift of 3k dollars do you need to file some form in you tax return to show this? I was wondering because I gifted my bil some cash for some favors he did for me during the last year. just curious what my filing responsibility would be. any input would be appreciated. thanks

frank

 

[MissMolly]

For $3,000, no taxes are owed by anyone, but you can read about the details here on larger amounts and gift tax exclusions. https://www.kiplinger.com/taxes/gift-tax-exclusion#:~:text=Federal%20gift%20tax%20exemption%202024,combined%202024%20limit%20is%20%2436%2C000.

 

[MarieIG]

That sum is significantly below the 2023 and 2024 gift tax exclusion. So - you're good.

 

[Car-Guy]

If you are gifting the 3k with tax paid funds, then no other taxes or reporting are due, by anyone. "You" are required to start filing form 709 if your gift exceeds 18k "this year" to any one person, but still no additional taxes are required until your gift is in excess of 13.6m in your lifetime.

 

[wrigley]

I'm confused. If he did some favors for you, aren't you then PAYING him for his work and time?

Mike

 

[frank]

I'm confused. If he did some favors for you, aren't you then PAYING him for his work and time?

Mike

he never asked for anything I just didn't feel right not compensating him for his time and effort on my behalf.

 

[glasswave]

cash for some favors

If it was for drugs, sex or a hit job, I'd suggest not reporting it.

 

[Wile E. Coyote]

If it was for drugs, sex or a hit job, I'd suggest not reporting it.

Actually, legally or illegally gotten income should all be reported.

 

[glasswave]

Actually, legally or illegally gotten income should all be reported.

That was a joke, hence the wink emoji.

 

[frank]

I will ask my cpa about it and see what he thinks. thanks for the advice.