Gifts

Section 102 defines gifts as it relates to the Internal Revenue Code. In general, the individual receiving the gift does not pay taxes on the gift. Only the donor pays taxes if applicable.

Form 1099-C: Cancellation of Debt

Form 1099-C

If you received a 1099-C, the first question you ask is: ‘Do I have to include this in my taxable income?’  Well, the answer is ‘it depends’.  Not what you want to hear but there is a lot of variables involved in answering this question.

Internal Revenue Service – Definition of Revenue

Definition of Revenue

The Sixteenth Amendment to the Constitution of the United States gives authority to Congress to tax income.  The Internal Revenue Service defines revenue via a term ‘Gross Income’.  In Chapter 26 of the Federal Code (Chapter 26 is the Internal Revenue Code) Section 61, Congress defines gross income as “… all income from whatever source derived…”.  This means even the penny you pick up off the ground is considered income.

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