ARE GIFTS TAXABLE?

I Hope You Can Help Me Out-

I had a person help me prepare my tax return this year and they told me that the $3,000 gift that I received from my Aunt is taxable. Usually I get a refund and because of this $3,000 I owe taxes. Is this right?

Heather

Heather, I suggest that you run from that tax preparer. True gifts that you receive from individuals are not taxable events. There might be some circumstances that I don’t understand. For example, if the person gave you something that you sold, there might be some tax ramifications but a true gift is not taxable. Can you imagine the havoc that Santa Clause would cause when he made Christmas gifts? Run from that preparer and find someone competent to prepare your tax return.

Larry Kopsa CPA