In most cases, you don’t have to pay taxes when you receive a gift. In Washington, when you receive a gift, the person who gave you the gift pays the taxes (I talked about the taxes that the gift giver may have to pay in my January 4th post). The one exception is when you receive a gift of a “capital asset” (real estate, stocks, etc.). You don’t pay taxes when you receive the gift, but if you sell it later, you’ll have to pay capital gains tax.
Do I have to pay taxes when I receive a gift?
Stephen King
The Eastside’s Estate Planning Attorney
Talis Law PLLC is a small Estate Planning firm on the Eastside. We work with people to help them understand what goes on during the estate planning and the probate process. Our firm offers flat fee services so clients feel comfortable asking the questions they need to understand what their documents mean, and what the process does.
Disclosure: While I am a lawyer, I am not offering legal advice. Posts on legal matters are intended to provide legal information and do not create an attorney/client relationship.