Yes folks, when you win a car........

Yes folks, when you win a car........

Post by Bill Dee » Sun, 26 Sep 2004 04:18:12


Quote:
>But still, the main question is, why is this income, and not a gift?

>Steve

  I believe it is something that was worked out decades ago between
gameshows/tv networks and the IRS.
 
 
 

Yes folks, when you win a car........

Post by xyzz » Sun, 26 Sep 2004 04:53:19

Quote:



> -


> -> -   ...it's income and Uncle Sam wants his taxes.
> ->
> ->
> -> How come it isn't a gift, and GM owes a gift tax instead?
> -
> -The giver doesn't pay gift taxes, the receiver does.
> -

> According to TITLE 26 US Code, Subtitle B Chapter 12 Subchapter A Sec. 2502 (c),

>    "The tax imposed by section 2501 shall be paid by the donor."

> But still, the main question is, why is this income, and not a gift?

REally.  But in that case, the recipient doesn't have to pay does he?
It only makes sense if that's the case.  So it's either a gift with
taxes paid by the giver or income with taxes paid by the receiver, but
it isn't both is it?

I guess I'll worry about it when someone gives me a gift big enough to
worry about it.

 
 
 

Yes folks, when you win a car........

Post by Jon Ensli » Sun, 26 Sep 2004 05:38:49

Quote:




> -


> -> -   ...it's income and Uncle Sam wants his taxes.
> ->
> ->
> -> How come it isn't a gift, and GM owes a gift tax instead?
> -
> -The giver doesn't pay gift taxes, the receiver does.
> -

> According to TITLE 26 US Code, Subtitle B Chapter 12 Subchapter A
> Sec. 2502 (c),

> "The tax imposed by section 2501 shall be paid by the donor."

> But still, the main question is, why is this income, and not a gift?

I am fairly certain that individuals and certain charities can make gifts,
but corporations cannot.

Jon