Purchase Solution

Taxation of Gifts

Not what you're looking for?

Ask Custom Question

Are gifts subject to an income tax? Why or why not? What constitutes a gift?

Purchase this Solution
Solution Summary

This solution discusses what a gift is, whether it is subject to income tax, and why or why not.

Solution Preview

Gifts are not subject to income tax. IRC Section 61 states that "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived." Merriam-Webster Online defines income as "a gain or recurrent benefit usually measured in money that derives ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Taxation and legal principles

    52269 Taxation and legal principles Problem of Taxation law I need detail answer of these question according to Taxation and legal principles in a range of situation given below in the problems .

  • Accounting: Tax Reform

    There are gifts that are not subject to taxes and these include gifts to spouses, gifts made to minor children in support payments, gifts for educational expenses, charitable gifts, present interest gifts, gifts of medical expenses, bonafide business

  • Individual Taxation: Practice Exam Questions

    Burt wants to make gifts to their four children in 2014 and plans to use the election to split gifts. What is the maximum total amount of the annual exclusion they will be allowed for these gifts (total includes gifts to all children)? a. $14,000.

  • Gifts and Taxation

    545274 Gifts and Taxation Kathleen received land as a gift from her grandfather. At the time of the gift, the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen's grandfather. One year later, Kathleen sold the land for $110,000.

  • Taxation - Gift Tax

    The annual gift tax exclusion omits many small transfers from gift tax treatment, with "up to $11,000 of gifts made to any individual during a taxable year being excluded from taxation" (Jones, 2004, p. 377).

  • Gift Tax, Estate Tax and the Unified Crefitw

    So, if a person gives away x among to someone in the form of gifts during their lifetime and this wasn't taxed, then when they pass they give away y2 and only xy and not xy2 were tax exempt the second amount of y would be taxed.

  • Memorandum: Tax Efficient Financial Planning

    He would like you to send him, in memo form, the various types of vehicles that can be used by clients to reduce the various kinds if taxation.

  • Financial Management in Public Service Organizations

    The health sector raises money to finance their initiatives through taxation as the major source of income. Medicare/Medicaid taxes are pulled from workers and health insurance plans are paid through employer.

  • Sotheby’s and Christie’s and Cover Gifts

    In case of women's magazines, publishers bear a large share of the cost of cover gifts. However, in case of music, computer, and video-game magazines, the cost of gifts is covered by the supplier.

  • Gifts from Employees

    In case of your company, since the policy does not encourage exchange of gifts, these gifts should be declined. The rationale is that you must follow the policy and intent of the company.

View More Related Solutions