Reply To: The Chillul HaShem in Lakewood

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#1309729
Meno
Participant

zahavasdad,

That’s not how the gift tax works.

First of all, the requirement to pay tax is on the giver, not the receiver.

Second, it’s very unlikely that a person would ever have to pay a gift tax. The way it works is that you only start paying a gift tax once you’ve given more than $5.45 million total in your life. Additionally, the first $14,000 of each individual gift doesn’t even count toward that $5.45 million.

Source: TurboTax (the info is also on the IRS website but the numbers haven’t been updated)

Bottom line, these people didn’t have to pay a gift tax.