A friend of mine has just inherited a large sum of money and is currently in prison. He wants to give me around $50,000 as a gift. Is this legal? What would I have to do to deposit the check? Do I have to pay taxes?
If the funds were obtained legally, it's legal for your friend to give them away. You'd deposit his check to you the same way you'd deposit any other check payable to you, except that you'd use a few more zeroes than usual on the deposit ticket.
As for the tax implications, we aren't able to advise you. Check with a qualified tax advisor (there might be some tax concerns for your friend, too, in making such a generous gift).
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If the funds were obtained legally, it's legal for your friend to give them away. You'd deposit his check to you the same way you'd deposit any other check payable to you, except that you'd use a few more zeroes than usual on the deposit ticket.