Uncle Sam is tearin me a new one...

[HuiDaddy]

hey guys, i am doing my taxes for the first time all alone and i need some advice from all you pros, pro-bono.

back in april '04, my mom wrote me a fatty check for $22,000 so i could purchase my 4R. do i need to add this $22,000 as "other taxable income"? i am using turbo tax to figure it out. so far i only owe $92 in federal. if i input this $22,000 into "other taxable income", i will end up owing $5,592 to uncle sam?!?! WTF!!! can someone please give me some advice. i duno what the heck i am doing... thanks guys.

 

[Kanab]

hey guys, i am doing my taxes for the first time all alone and i need some advice from all you pros, pro-bono.

back in april '04, my mom wrote me a fatty check for $22,000 so i could purchase my 4R. do i need to add this $22,000 as "other taxable income"? i am using turbo tax to figure it out. so far i only owe $92 in federal. if i input this $22,000 into "other taxable income", i will end up owing $5,592 to uncle sam?!?! WTF!!! can someone please give me some advice. i duno what the heck i am doing... thanks guys.

I would get with your mom and set that $22K up as a loan. Write-up an IOU with a payment schle of $1 per year. Now it's a loan as intended and not reportable as income. I am sure that is how it was ment. As a loan right. No one would just give their kid $22K for a car, right?

PS- she can give you $10K tax free and the other $12K as a loan.

 

[Loki]

you can also put it down as a 10k tax free gift from both mom and dad (totalling 20k)and just pay tax on the 2k. been there, done that. no problem.

 

[sharp4runr]

you can also put it down as a 10k tax free gift from both mom and dad (totalling 20k)and just pay tax on the 2k. been there, done that. no problem.

Actually he's set as of 2004, its up to 11K:

http://www.turbotax.com/articles/TheGiftTax.html

you give people a lot of money or property, you might have to pay a federal gift tax. But most gifts are not subject to the gift tax. For instance, you can give up to the annual exclusion amount ($11,000 in 2004) to a person, every year, without facing any gift taxes, and without the recipient owing an income tax on the gifts. And you can give up to $1,000,000 in gifts, total, in your lifetime, before you start owing the gift tax.

 

[Chigger]

I wish my mommy would buy/pay me money for my 4Runner. lol

 

[Atlanta_man]

If you get in a gift tax situation ( over 11K or whatever depending on her marriage status)

She owes the tax, not you.

The loan suggestion is a good one.
Create one just before the audit if necessary.

 

[CVsGX470]

hey guys, i am doing my taxes for the first time all alone and i need some advice from all you pros, pro-bono.

back in april '04, my mom wrote me a fatty check for $22,000 so i could purchase my 4R. do i need to add this $22,000 as "other taxable income"? i am using turbo tax to figure it out. so far i only owe $92 in federal. if i input this $22,000 into "other taxable income", i will end up owing $5,592 to uncle sam?!?! WTF!!! can someone please give me some advice. i duno what the heck i am doing... thanks guys.

If your mom can afford to give you $22,000 she should be able to pay the tax on it but I wouldn't sweat it too much. I agree with the loan theory. Plus, if you are still a dependant of your mothers and live under her roof and she claims you on her taxes as a dependent then she can give you any amount of money not thought of as income. My mom gave me a couple thousand for college and I didn't think of it as income. PLUS the money was already taxed before it went into her pocket. you can't tax it again...

You're cool. Call for some advice if you are worried.
CV