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Breaking News Home | All | Religion | Society | Tech | Choice | SA News
FRONT PAGE  |  5/30/2015
SUNDAY, NOV 22, 2009  |  1 comments
Obama, The Nobel Prize And The IRS
What are the tax implications of getting a gift or prize, and what are the tax consequences of regifting it? It turns out that the answers are different for gifts and prizes.

When you receive a gift, there's no taxable income to you, no matter how large the gift. You can also regift that gift, without worrying about the Internal Revenue Service--so long as its value is $13,000 or less. That's because under something known as the annual gift exclusion, anyone can give anyone up to $13,000 a year in money or property without worrying about gift taxes.

In contrast to most gifts, prizes and awards are taxable. This was not always so. Prior to 1986, many prizes were tax-free, generally hinging on whether the person awarded the prize had to perform services to receive it. As long as no significant services were a predicate to getting the award, there was generally no tax. ...


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Jim Lincoln | Nebraska  Find all comments by Jim Lincoln
I wonder if the United States government is a qualified charity?

Philippians 3
14 I press on toward the goal for the prize of the upward call of God in Christ Jesus.
15 Let us therefore, as many as are perfect, have this attitude; and if in anything you have a different attitude, God will reveal that also to you;

2 Timothy 2
5 And also if anyone competes as an athlete, he does not win the prize unless he competes according to the rules.
...
10 For this reason I endure all things for the sake of those who are chosen, that they also may obtain the salvation which is in Christ Jesus and with it eternal glory.
11 It is a trustworthy statement: For if we died with Him, we shall also live with Him;---NASB

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