# Large cash gifts and federal income tax **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 18, 2013, 5:56pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593 "2013-10-18T17:56:26Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![brujaja](https://avatars.discourse-cdn.com/v4/letter/b/4af34b/32.png) [@brujaja](https://boards.straightdope.com/u/brujaja)\ **Post date:** [October 18, 2013, 5:56pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/1 "2013-10-18T17:56:26Z")
Say you are a single person with no dependants, and you have a job paying, say, ten bucks an hour. Someone gives you a cash gift in the low five figures. What percentage of this gift would you expect to pay in taxes? ---
**Author:** ![BrickaBracka](https://avatars.discourse-cdn.com/v4/letter/b/c5a1d2/32.png) [@BrickaBracka](https://boards.straightdope.com/u/BrickaBracka)\ **Post date:** [October 18, 2013, 5:58pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/2 "2013-10-18T17:58:46Z")
Cash? Like a bunch of dead presidents? Nothing. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [October 18, 2013, 5:59pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/3 "2013-10-18T17:59:34Z")
> **[Frequently Asked Questions on Gift Taxes | Internal Revenue Service](https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes)** > > Below are some of the more common questions and answers about Gift Tax issues. Read and learn! ---
**Author:** ![Disheavel](https://avatars.discourse-cdn.com/v4/letter/d/e274bd/32.png) [@Disheavel](https://boards.straightdope.com/u/Disheavel)\ **Post date:** [October 18, 2013, 6:01pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/4 "2013-10-18T18:01:10Z")
[IRS FAQ on gifts](http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes) will explain that: > [@](#): > > Who pays the gift tax? > The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement. unless it is less than $14,000 in which no tax is needed. Ninjaed! But I am very sad as I wanted to ‘Quoth the Raven[man]’ ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [October 18, 2013, 6:03pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/5 "2013-10-18T18:03:54Z")
Since the OP is asking a question which might have legal implications, we prefer that these be done in IMHO where opinions as well as factual answers are found. Moved. **samclem** , moderator ---
**Author:** ![brujaja](https://avatars.discourse-cdn.com/v4/letter/b/4af34b/32.png) [@brujaja](https://boards.straightdope.com/u/brujaja)\ **Post date:** [October 18, 2013, 6:06pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/6 "2013-10-18T18:06:44Z")
Dang! You guys are fast! That is good news, thanks very much! ---
**Author:** ![brujaja](https://avatars.discourse-cdn.com/v4/letter/b/4af34b/32.png) [@brujaja](https://boards.straightdope.com/u/brujaja)\ **Post date:** [October 18, 2013, 6:08pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/7 "2013-10-18T18:08:35Z")
P.S. \*\* Disheavel:\*\* Ha ha, I see what you did there. ---
**Author:** ![drpepper](https://avatars.discourse-cdn.com/v4/letter/d/8baadc/32.png) [@drpepper](https://boards.straightdope.com/u/drpepper)\ **Post date:** [October 18, 2013, 11:10pm UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/8 "2013-10-18T23:10:27Z")
The recipient of a gift never pays taxes on it. Period. No matter how large. Seems strange I know. The person who gives the gift may have tax implications (that is where the earlier $14K figure comes into play). So the answer to your question is $0. ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [October 19, 2013, 1:24am UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/9 "2013-10-19T01:24:07Z")
> [@drpepper](#): > > The recipient of a gift never pays taxes on it. Period. No matter how large. Seems strange I know. > > The person who gives the gift may have tax implications (that is where the earlier $14K figure comes into play). > > So the answer to your question is $0. And even for the giver, gifts in excess of $14,000 require filing a gift tax return which counts against the giver’s gift tax lifetime exemption amount, which is $5,250,000 in 2013. So the giver would’ve needed to give away quite a bit. ---
**Author:** ![GusNSpot](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gusnspot/32/436_2.png) [@GusNSpot](https://boards.straightdope.com/u/GusNSpot)\ **Post date:** [October 19, 2013, 5:20am UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/10 "2013-10-19T05:20:03Z")
I thought it was $13,000. Hummmmmmmmm Maybe it is 13 for a non taxable trust disbursement… Anybody want to adopt me? ---
**Author:** ![Nothar](https://avatars.discourse-cdn.com/v4/letter/n/ce73a5/32.png) [@Nothar](https://boards.straightdope.com/u/Nothar)\ **Post date:** [October 19, 2013, 8:35am UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/11 "2013-10-19T08:35:23Z")
> [@GusNSpot](#): > > I thought it was $13,000. Hummmmmmmmm > > Maybe it is 13 for a non taxable trust disbursement… > > Anybody want to adopt me? It was 13,000 for tax year 2012. It got an inflation adjustment to 14,000 for 2013. As previously stated however, that is just the minimum amount a person must give to be required to file a gift tax return. Any amounts gifted above 14,000 (or double that if married and gift-splitting) would simply reduce your lifetime exclusion amount for estate/gift tax purposes, which is currently at 5.25 million by the excess above the 14,000 gifted to each individual. ---
**Author:** ![FairyChatMom](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fairychatmom/32/21906_2.png) [@FairyChatMom](https://boards.straightdope.com/u/FairyChatMom)\ **Post date:** [October 19, 2013, 11:05am UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/12 "2013-10-19T11:05:25Z")
I remember back when Oprah gave cars to her studio audience and some were whining about the taxes. Were those not gifts? Or were they considered prizes? Or something else? ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [October 19, 2013, 11:46am UTC](https://boards.straightdope.com/t/large-cash-gifts-and-federal-income-tax/671593/13 "2013-10-19T11:46:30Z")
> [@FairyChatMom](#): > > I remember back when Oprah gave cars to her studio audience and some were whining about the taxes. Were those not gifts? Or were they considered prizes? Or something else? [Commissioner v. Duberstein - 363 U.S. 278 (1960)](http://supreme.justia.com/cases/federal/us/363/278/case.html) > [@](#): > > A gift in the statutory sense, on the other hand, proceeds from a “detached and disinterested generosity,” Commissioner v. LoBue, 351 U. S. 243, 351 U. S. 246; “out of affection, respect, admiration, charity or like impulses.” Robertson v. United States, supra, at 343 U. S. 714. And, in this regard, the most critical consideration, as the Court was agreed in the leading case here, is the transferor’s “intention.” We don’t have to worry about characterizing the cars. The tax code makes _any_ accession to wealth taxable unless specifically excluded by the code. As long as no exception applied to the cars, they are taxable. Oprah gave the cars to the audience in the course of her business, which was creating an entertainment show and selling advertising time to sponsors. She gave out the cars to promote her show and create ratings. She was not motivated by affection, respect, admiration, charity, or like impulses. Anyone who disagreed would be free to litigate the issue.