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Old 08-21-2005, 11:21 PM
AcmeSalesRep AcmeSalesRep is offline
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Join Date: Aug 2004
Posts: 25
Default Re: Do bonuses affect taxes? (US)

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The *recipient* of a gift is never required to pay any taxes on said gift. Bill Gates could walk up to you and write you a check for $100,000,000 and you would not owe any taxes on the money. The *giver* has to worry about the tax implications

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This is soooooooo wrong.

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Repeating...no, it is not. Unless you take umbridge with the word "never" which is still correct since the recipient is not required to enter into an agreement where they pay the taxes instead of the donor. (Though they might not get the gift if they don't.)

See http://tinyurl.com/9yqsk and note question number 2.

Q: Who pays the gift tax?

The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
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