Is this considered a Gift?

pjreplogle · Feb 28, 2008

What is the name of your state? PA

My Mom gave me a gift of $10,000 from a CD she has in the bank. This money was from the sale of her house 17 years ago. Is this considered a gift or maybe an inheritance. Do I have to pay tax on the interest?

Indiana Filer · Feb 28, 2008

pjreplogle said:
What is the name of your state? PA

My Mom gave me a gift of $10,000 from a CD she has in the bank. This money was from the sale of her house 17 years ago. Is this considered a gift or maybe an inheritance. Do I have to pay tax on the interest?

Wouldn't it be an inheritance only if mom died? Is she still alive?

pjreplogle · Feb 28, 2008

My Mom is 85 and still alive. I thought the money would be considered a tax free gift.

anteater · Feb 28, 2008

pjreplogle said:
My Mom is 85 and still alive. I thought the money would be considered a tax free gift.

Yes, it's a gift. And you only have taxable income on interest or dividends generated from the date that you received the gift.

efflandt · Feb 28, 2008

Besides what anteater said, the current limit for a gift that does not need to be reported is $12,000 annually from any person to any person. http://www.irs.gov/newsroom/article/0,,id=107815,00.html

Is this considered a Gift?

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