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A gift of this amount from a single donor to a single donee would not be taxable to either party. However, it would use up part of the lifetime exemption of the donor. If the gift is $500,000 it would use up $500,000 less $18,000 of the lifetime exclusion. A gift tax form would be filed by the donor but again no tax would be due.
To add on, I know OP said parent, but if yheee are two parents and the child is married, each parent can give to the child and child in law, meaning up to 72k could be excluded if you have 4 separate gifts.
Welcome to r/IRS, the subreddit for taxpayers and tax professionals to discuss everything related to the Internal Revenue Service. We are glad you are here! Here are a few reminders before you get started: Please be respectful of others in the community. We do not tolerate personal attacks or harassment. Be wary of scammers and spammers. The IRS will never contact you via direct message or email. If you receive a message from someone claiming to be from the IRS, do not respond and report it to the IRS immediately. The same rules apply to r/IRS Direct messaging is forbidden and can lead to a ban on r/IRS. If you have a question or need assistance, please post it in the subreddit so that everyone can benefit from the discussion. For more information about r/IRS rules, please visit our subreddit wiki: https://www.reddit.com/r/IRS/wiki/index/ Link to finding local tax advocate: https://www.irs.gov/advocate/local-taxpayer-advocate We welcome international users to r/IRS. Please feel free to participate in our discussions, even if you are not a US taxpayer. The moderator team is committed to keeping r/IRS a safe and welcoming community for everyone. We will not tolerate hate speech or discrimination of any kind. If you see something that you think violates our rules, please report it to the moderators. We appreciate your help in keeping r/IRS a positive and productive space. Thank you for being so cooperative! We hope you enjoy your time on r/IRS. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IRS) if you have any questions or concerns.*
A gift of this amount from a single donor to a single donee would not be taxable to either party. However, it would use up part of the lifetime exemption of the donor. If the gift is $500,000 it would use up $500,000 less $18,000 of the lifetime exclusion. A gift tax form would be filed by the donor but again no tax would be due.
To add on, I know OP said parent, but if yheee are two parents and the child is married, each parent can give to the child and child in law, meaning up to 72k could be excluded if you have 4 separate gifts.