I am outa a 13yr relationship. we agreed he will give me 70,000 on the sale of the house that is not in my?

Question

my name. since he is already paying taxes on the 300,000 profit and giving me this as a "gift" why cant i cash this check and not pay taxes again. should i take cash from him and then deposit it. or is it simply anything over 10,000 is flagged to irs?

Answer 1

OK, not having been married does change the situation some.  If it's a gift, you don'r owe tax on it and don't need to report it, but he will have to file a gift tax return for the amount, although he probably won't owe any gift tax on it.  He will owe some capital gains tax on the sale though.

Just take the check and deposit it.

Answer 2

If the house was in his name only the 1099S reporting the sale of house will be in his SS#.  In that case he is responsible for any income tax that may be due.  Since there is a $250,000 exclusion it is not likely that he will have a great deal of tax to pay in the first place.  If he gives you $70,000 and puts it in writing that this is a gift that would be tax free to you.  In fact any amount that is a "gift" is tax free to the recipient.  However he does have a tax issue to deal with.  Any gift to a single person in one year that is greater than $12,000 requires that a IRS form 709 be filed to report that gift.  The giver is subject to gift tax should their life time giving reported on a 709 exceeds $1,000,000.

Answer 3

If you were audited, the IRS probably would make you pay taxes. That's the government for you. lol

If it's an option, take the cash instead and deposit small increments over a couple months... into a few different bank account :)

seriously though, if it were me, i'd ask an accountant....

Answer 4

There is nothing illegal about you receiving the money and depositing it in a bank or elsewhere.  Since it is a gift, you will not owe taxes on it and you will not report it on your tax return.  The transaction may be reported but there is no need to break up the amount into smaller transactions since you have nothing to hide.  

The owner will pay income taxes if he is single and his gain on the sale is more than $250,000.  When he gives you the $70,000 there is a return (Gift Tax Return) that he has to file with the IRS.  He won't pay gift tax until his lifetime gifts exceed $1 million.  So unless this applies, no gift tax will be owed.  But in any case, not your tax issue.

Answer 5

The receiver of gift does not pay any taxes or files gift tax return. Read this about Gift Tax

http://taxipay.blogspot.com/2008/03/us-g...