My mom will get 1 million dollars from her boyfriend. Does she have to pay taxes on that million?

Green: My mom will get 1 million dollars from her boyfriend. Does she have to pay taxes on that million?
My mom been taking care of her boyfriend for past couple years. She paid for his housing, food, etc. He is about to get 2 million dollars from a lawsuit and he wants to give half of that to my mom because she been taking care of him. Does she have to pay tax on that?
No recipient gift tax. Is there an upper limit?

Answers and Views:

Answer by Judy
No, not if it’s a gift to her. He will have to file a gift tax return, but unless he’s given large gifts before to someone, he won’t pay any gift tax.

Answer by Mitch Y
It’s a gift and recipients of gifts don’t need to pay any gift tax, but donors do. In 2008, there is a 2 million dollar estate and gift tax exemption, which means that you can give 2 million dollars away tax free. Each year, you can give away 12,000 without worrying about the gift tax exemption. After that, each dollar over 12,000 cuts into the exemption. Again, that’s only for donors. Your mom doesn’t need to worry.

Answer by Kurt L
It appears as if some of the money is reimbursement for money spent on housing, food, utilities etc., not taxable.

Some of the money is for wages, which is taxable.

Some of the money is a gift, not subject to income tax, but maybe to gift tax.