We want to gift our adult child $14,000. Where would we report this on our tax return? What would be the benefit to us?
will our child have to pay taxes?
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Tax Professional Answers
John Stancil
Gifts have no effect on income taxes. You don't show it on your return, and your child does not show it on his/her return. The only time the child would pay any tax was if you gave them property and they later sold it for more than your cost basis in the property. They would pay income tax on the difference in the proceeds and your cost basis. From a tax standpoint, there is no benefit to you.
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472 weeks ago