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If gifted 1 million dollars do i have to pay taxes

Hurst, TX |

friend wants to give me 1 million dollars

Attorney Answers 4


  1. Gift taxes are paid by the giver, not the recipient. You will be responsible for taxes on income generated by the gift, but not the actual gift.

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  2. I agree with Attorney Fink. However, the donee has secondary liability for gift taxes if the donor does not pay them.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.


  3. At the federal level, there is a gift tax exemption of $1,000,000 and an annual donee exclusion of $13,000 for present interest gifts. So the gift would not be a taxable gift for federal gift tax purposes, assuming the giver has not previously used up any of his gift tax exemption. If so, there is no gift tax issue at the federal level.
    As for Texas, I am not qualified to give an answer.
    From an income tax perspective, the prior attorneys are correct that gifts are not income taxable to the recipient.

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  4. All excellent answers. Just remember you will be responsible for paying income tax on the one million dollars.

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