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Income Tax Question

Discussion in 'Bad Dog Cafe' started by radiomanjh, Jan 12, 2018.

  1. radiomanjh

    radiomanjh Tele-Afflicted

    Nov 14, 2010
    Texas
    my wife and I took out $12,000 cash from her IRA account. we paid 20% tax on it. no penalty because she is 64. the reason we did was to help our Son out and we gave it all to him. my question is can I claim that money on the itemized deduction form as a gift of cash? thanks for any info.
     

  2. Knowcaster

    Knowcaster Tele-Holic

    Age:
    54
    517
    Jun 30, 2007
    Pittsburgh, PA
    No, gifts to individuals are not deductible.
     
    radiomanjh and nojazzhere like this.

  3. Chud

    Chud Poster Extraordinaire Platinum Supporter

    Dec 30, 2010
    New York City
    radiomanjh likes this.

  4. Guitarzan

    Guitarzan Poster Extraordinaire

    Feb 28, 2006
    Hotlanta, GA
    He he.

    A guitar forum for tax advice. :lol:
     

  5. PacificChris

    PacificChris Tele-Meister Silver Supporter

    219
    Jul 1, 2014
    Northern California
    I think there's a dollar figure of what he can receive without declaring it as income, but as to making it a deduction for yourself, I will defer to the others here.
     

  6. 5ofeight

    5ofeight Tele-Holic Ad Free Member

    Age:
    60
    879
    Oct 17, 2016
    Glasgow
    And a tax question from Taxus...get it?...it's ok, I'll get my coat..:oops:
     
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  7. radiomanjh

    radiomanjh Tele-Afflicted

    Nov 14, 2010
    Texas
    yep your right, I ended up finding out. it would have to be a gift to a charitable organization and with a tax form for anything over $500.
     

  8. Old Tele man

    Old Tele man Friend of Leo's

    May 10, 2017
    Tucson, AZ
    TAXES? They're something that WORKING musicians have to worry about...not the rest of us (wink).
     
    nojazzhere likes this.

  9. BryMelvin

    BryMelvin Tele-Afflicted

    Age:
    66
    Jan 4, 2014
    Arivaca AZ
    No but I think your son may be liable to pay Tax on part of it. IIRC you can give your lids up to 10K in a year without them paying income tax on it.
     

  10. djh22

    djh22 Tele-Holic Silver Supporter

    Age:
    62
    587
    Jan 12, 2012
    VA
    The annual gift tax exclusion amount is $14,000 for 2017, stuck at that level since 2013. A husband and wife can each make $14,000 gifts to individuals, so there should be no liability to your son.
     
    radiomanjh likes this.

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