When a parent gifts child money is the taxed?

This is a bit tricky, as it depends on several factors. Here's a breakdown:

Generally, gifts are NOT taxed in the US. This means that when a parent gives money to a child, the parent does *not* have to pay any taxes on that transfer.

However, there are exceptions:

* Large Gifts: The IRS has an annual gift tax exclusion. In 2023, this is $17,000 per person per year. If a parent gives a child more than this amount in a single year, the excess is subject to gift tax. However, this doesn't mean the child has to pay taxes, it's the *giver* who may be liable.

* Gifting Property: Gifting assets like stocks, bonds, or real estate can sometimes create tax implications, even if the gift is below the annual exclusion. This is because the child may inherit the original cost basis of the asset (what the parent paid for it) and owe capital gains tax when they sell it.

It's always best to consult a tax advisor. They can help determine if there are any tax implications for your specific situation. They can also advise on strategies to minimize taxes when making large gifts.

Important Note: This information is for general guidance only. Tax laws can be complex and vary by jurisdiction. Consult a qualified tax professional for personalized advice.

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