5 ms·

Please explain why you think the recipient of a gift is the one that has to pay tax on it.

• dnautics 5y ago
  is this generally not understood? For example, if you go on price is right, and you win a nice trip to tahiti, you still have to pay tax on it.
  • NovemberWhiskey 5y ago
    If it's generally understood, then it's wrongly understood: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe... "Who pays the gift tax? The donor is generally responsible for paying the gift tax." >For example, if you go on price is right, and you win a nice trip to tahiti Those are prizes or winnings, not gifts. Totally different tax treatment.
  • stonemetal12 5y ago
    Gameshow winnings are not a gift. I think it is considered gambling and taxed accordingly.
    • kbenson 5y ago
      Well, most people might think any sort of Crypto is gambling too...
• 0x0 5y ago
  Because otherwise you can come and build me a website and I can gift you $10k and wow nobody needs to pay income tax anymore?
  • NovemberWhiskey 5y ago
    No, because when you give me $10K because I made you a website, you're obviously paying me for my work. The IRS is not stupid, and doesn't look at the form you claim, it looks at the actual factual situation.
    • throw123123123 5y ago
      The IRS doesn't look at any factual situation, its clerks in an administration building..