Are Wedding Gifts Taxable?
In most cases, you should not expect to pay taxes on gifts you received for your wedding. The Internal Revenue Service imposes taxes on substantial monetary gifts on the donor, not the recipient. These gifts don't need to be reported as income, even if they were cash or of substantial value.
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Definition of Gifts
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The Internal Revenue Service rules for gifts only apply to actual gifts. If you received payment for any work performed and claim it as a gift, you are committing tax fraud. The government defines gifts as something given without receiving anything other than the fair market value in return.
Limit on Gifts
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There is no cap on how much money you can receive as a gift. No matter how valuable the gifts you receive are or how much money your guests give you, it is not required to be reported or subject to income taxes.
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Property Gifts
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If someone gave you a piece of property for your wedding that later produces income, that is considered income. For example, if you receive a wedding gift of a beach house, the value of the house is not taxable. However, if you rent out the beach house, the income you receive from rentals is taxable.
Gift Sales
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If you later sell some wedding gifts, the money earned may be subject to taxes. This doesn't apply to household goods that people commonly receive as wedding gifts. If you received stocks or bonds as a wedding gift the sale can be taxable.
Giver Taxes
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If you receive a substantial monetary gift for your wedding, you may want to inform the giver that their gift is subject to tax. Gifts up to $13,000 are not taxed. If someone gives you more than $13,000, you should inform them that it is a taxable gift.
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References
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