<prompt> Human: What are the tax implications of my fiancées parents giving her 40k as a wedding gift? Note she has a shared account with her parents. She would then move the money to our shared account. Alternatively could her parents pay off a chuck of my house instead? Whats the smartest way to go about this? I understand 14kyr is not taxable.  <response>: Her parents can gift her 28kyr before it needs to be reported to the IRS. They can gift 56kyr to both of you as a couple. If they exceed the yearly exclusion then the gift needs to be reported to the IRS using form 709. They will not owe any taxes on it as long as they are under the lifetime exclusion, which would be around 11 million for a couple. 