Do I have to pay tax if I receive my share from my father’s property thru my daughter’s name? 4 Answers as of September 24, 2012

My family sold my father’s property in India and divided the money. The construction company that bought the property paid each of us our share. I received mine in my daughter’s name, which is 18 years old for her college studies.

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Irsfeld, Irsfeld & Younger LLP | Norman H. Green
Your question is somewhat ambiguous.Did your father die? If he died, and shortly thereafter his property was sold, then probably you would have been entitled to an income tax deduction for your share of the expenses.
Answer Applies to: California
Replied: 9/24/2012
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
Perhaps, if there was tax due. What you did was take money due to you and gifted it to your daughter, and you cannot gift what you do not have rights to.
Answer Applies to: Michigan
Replied: 9/24/2012
Law Offices of Charles R. Perry
Law Offices of Charles R. Perry | Charles R. Perry
You will need to speak to a tax adviser in your area to obtain a definitive answer to your question. It appears, however, that the property was owned by your father, and not by you. In addition, the money you received was essentially a gift from your father to you and/or your daughter. Gifts are generally not considered taxable income under American tax law. Again, your tax adviser will be able to ask questions and obtain more facts to determine whether the money received was indeed a gift and therefore non-taxable under US tax law.
Answer Applies to: California
Replied: 9/20/2012
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
This type of transaction is controlled by something called "assignment of income." You are subject to tax on this gain as you are the true owner. As a US citizen or resident you are taxed on your worldwide income. You also may be subject to a gift tax and must file a gift tax return Form 709. Get a tax attorney to assist you.
Answer Applies to: Pennsylvania
Replied: 9/20/2012
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