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gifts = income?

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  • LadyInTheRed
    replied
    Originally posted by ryan View Post
    I just had to look into this myself...as I understand it, 'gifts' are treated as income by the BK trustee and can affect your six month look back....

    OTH, "gifts under $10,000 in one year are not treated as TAXABLE income by the IRS.

    So, two different entities .

    If I'm wrong someone will correct me.
    I have a correction and some clarification, not that they are really relevant to BK.

    Currently, gifts of under $13,000 in one year are not taxed by the IRS. Even though gifts of over $13,000 in one year to the same person are considered taxable and must be reported on a gift tax return, no tax is paid until the giver makes reportable gifts (i.e. over $13k per recipient per year) of over $1 million in his/her lifetime. The IRS does not tax gifts of any amount as income. Gifts are subject to gift tax at a rate which is currently equal to the top income tax rate. Gift tax is paid by the giver, not the receiver.

    As I understand it, unlike the Internal Revenue Code, the Bankruptcy Code makes no distinction between income and gifts.

    Leave a comment:


  • ryan
    replied
    I just had to look into this myself...as I understand it, 'gifts' are treated as income by the BK trustee and can affect your six month look back....

    OTH, "gifts under $10,000 in one year are not treated as TAXABLE income by the IRS.

    So, two different entities .

    If I'm wrong someone will correct me.

    Leave a comment:


  • c24h44o22
    started a topic gifts = income?

    gifts = income?

    I've been reading all these threads and now I'm a little confused about gifts. Do I need to include gifts in my income to determine the means test if I received it in the six month look back? What about school reimbursement?

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