Taxable Income for Alexis?

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
Colonel_Buck
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Taxable Income for Alexis?

Postby Colonel_Buck » Tue Dec 31, 2013 2:55 am

More than 1,700 people have contributed more than $70,000 for Alexis Shapiro, of Cibolo, Texas, who weighs nearly 200 pounds and is gaining about 2 pounds a week because of a runaway condition called hypothalamic obesity.


Is the $70,000 taxable income or will it be treated as a gift? If it is not used for medical reasons, does it lose its gift status?
What kind of bomb was it? The exploding kind.
How can a blind man be a lookout? How can an idiot be a policeman?
But that's a priceless Steinway. Not any more.

Paul

Re: Taxable Income for Alexis?

Postby Paul » Tue Dec 31, 2013 4:30 am

The nature of use of a gift or the nature of the recipient can affect whether the gift is subject to gift tax or is deductible by the donor, but a gift is never taxable income, regardless of how it is used or who gave it.


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