Hi there! Gifts and inheritance are generally not taxable to the recipient, so you would be in the clear. However, any growth on the gift (like interest, dividends, capital gains, etc) you would be responsible for paying tax on in future years.
Your dad would be required to file a gift tax return (Form 709) since the gift exceeds $15,000. Form 709 is due April 15th unless an extension is filed. Your dad can’t claim the gift to you as a deduction on his income tax return, but he will not owe any tax on the gift either.
Gift tax doesn’t kick in until you exceed your lifetime giving threshold of $11.7 million. (Yup, you read that right!) So the $50,000 your dad gives you will apply to his lifetime giving limit, but no tax is due at this point.
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Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.