Personal Gift from friends
I have friends who are helping me out right now and are offering a certain amount of money to keep me afloat.
I want to start a business and would like to take some of this money to invest in it and, hopefully, succeed to be able to pay them back. However, to make it clear, they are not investors and are not expecting to get the money back, this would be a personal gift.
Do I have to pay income tax on gifted money?
A gift of $14,000 or less is not taxable, and I believe you can get that same sum from multiple people without paying taxes, but I am not 100% positive. I recommend checking out the IRS’s FAQ on Gift Tax for more guidance. You could also check with a personal tax adviser – they have a lot of free time now that tax season has passed!