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