Gift tax

What is the name of your state? MS

My mom just received a settlement for an injury. My question is she wants to give me most of the money which will be about 75,000. Will either one of us have to pay taxes on this?

[gobonas99]

As the recipient, you will not have to pay taxes on the gift. As for whether your mother will have to pay taxes on it, it will depend on how much she gives away as gifts over the course of her lifetime - in many, but NOT all cases, the giver of the gift will not have to pay taxes on it either. But to be on the safe side, you mom could give you the gift over a span of several years to take advantage of the $11,000 per year gift exemption.

For more explanation of how gift tax works, read this thread:

[url]http://forum.freeadvice.com/showthread.php?s=&threadid=145568[/url]

-Christina