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Calling Tax Experts. If you receive a "gift", do you pay taxes on it?

JMapleton

JMapleton

Diamond Member
Let's say you're a business, and another business sends you an unsolicited "gift." Like a free product.

Do you have to pay taxes on it?

What if you give the business another good or service in exchange for that gift? Like promotion?

For example, if Intel send Anand a new chip to keep (I know Anand sends the products he reviews back), but let's say they let him keep it, would he pay taxes on it?
 
"Gifting" is a method private citizens use to avoid paying higher death taxes.

Something to think about?
 
As long as there's no income generated you don't pay tax (assuming it's under $12,000 or whatever per year to a single person). Also, it's not a gift if it's in return for a service, or vice versa.

So, in your situation, yes, it's taxable.
 
I paid $1.00 for a car a few years ago, I didn't have to pay any taxes when I registered the vehicle because I believe there was a specific state law excluding taxation of transactions under a specific amount for vehicles
 
mizzou said:
I paid $1.00 for a car a few years ago, I didn't have to pay any taxes when I registered the vehicle because I believe there was a specific state law excluding taxation of transactions under a specific amount for vehicles
Click to expand...

I believe in some states they call BS on transactions that look suspiciously low and tax you on a book value. This is because there are a huge amount of people doing private party sales that will write up an extra bill of sale showing a lower sale amount to reduce the taxes they'll pay.
 
Bignate603 said:
I believe in some states they call BS on transactions that look suspiciously low and tax you on a book value. This is because there are a huge amount of people doing private party sales that will write up an extra bill of sale showing a lower sale amount to reduce the taxes they'll pay.
Click to expand...

yeah a buddy of mine bought a car from a friend. the car was worth $8k but the bill of sale said $200 they still had to pay the core ct tax.
 
Nik said:
"Gifting" is a method rich people use to avoid paying higher death taxes.

Something to think about?
Click to expand...
I won a laptop a couple of years ago in a contest. My bookeeper said I had to declare it. I don't know if its the same as regular earned income, but they did send me a 1099, I believe, or something like it.
 
A dedicated forum troll looking for legal advice? I'll pass.

PS. Not enough facts for anyone to give you a good answer.
 
JMapleton said:
For example, if Intel send Anand a new chip to keep (I know Anand sends the products he reviews back), but let's say they let him keep it, would he pay taxes on it?
Click to expand...

I never paid taxes on any of the review products I received.. And that's not really a gift either btw
 
magnets.jpg
 
Bignate603 said:
I believe in some states they call BS on transactions that look suspiciously low and tax you on a book value. This is because there are a huge amount of people doing private party sales that will write up an extra bill of sale showing a lower sale amount to reduce the taxes they'll pay.
Click to expand...

I also paid a $1 for a car a few years back (in NC), paid nothing on taxes when I returned to IL (where i was living at the time). Bought it from my grandma. It was my granddad's car, which had been garaged for almost 3 years.
 
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