reporting of gifts

[jonk1969]

What is the name of your state? MA

Just came across this site. Seems great.

Okay, I'm not going to lie to you. I'm a complete idiot when it comes to taxes, don't really understand much about them, and don't really WANT to understand much about them.

My question is really rather straightforward. I know that the maximum amount a donor can "gift" to a single donee without having to pay gift tax is $12,000 for the year 2006.

I also know that gifts are not considered to be taxable income for the donee (at least on the federal return).

My question concerns STATE tax returns.

In Massachusetts, there is no gift tax, which I take it means that a donor can gift any amount of money to a donee and the donor does not have to report it on his/her state tax form or pay any tax on it.

What I want to know is, on the Massachusetts state tax return, does the DONEE have a responsibility to declare the gifted amount as income? It would seem like no, but I just wanted to be sure.

Thanks a mil if you can help.

jonk1969What is the name of your state?

[LdiJ]

Well..first you are a little bit off on the federal. Its 12k before a gift tax return has to be filed. Whether or not any gift tax has to actually be paid depends on whether or not the gifter has gifted above their lifetime exclusion for gifting (at least 1 million)

As far as MA is concerned that is so state specific that you need a local professional to answer that question.

I do not believe that we have any MA professionals who are regulars here.