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    Taxation of Gifts

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

    © BrainMass Inc. brainmass.com June 4, 2020, 12:52 am ad1c9bdddf

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    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 ...

    Solution Summary

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