Category Archives: Gifts

Won a Prize

Today TaxMama hears from Jed in Missouri, who says. “I won a trip. Due to health issues, I never booked or took the trip. The voucher has since expired. Now the IRS says I owe tax on the value of the trip. Is this correct?”

Donating Baby Clothes

Today TaxMama hears from Chet in Illinois, with this question. “We are planning on donating many clothes that no longer fit our 9 month old daughter. We received many of these items as gifts. Can we still take a charitable contribution deduction?”

Home Warranty

Today TaxMama hears from James in Florida with this question. “I’m a licensed Realtor ® in Florida. If I purchased a home warranty plan for a buyer as a gift at closing, could I deduct the cost from my taxes at years end?”

A Million Bucks

Today TaxMama hears from Jimmy in Georgia, who just got lucky. “If someone gives me $1 million as a one time gift, will I be taxed on the money? If so, how should I receive the gift to eliminate paying taxes on the money? Should I get it in stock, bonds, or in cash? I […]

Gifting a Mortgage

Today TaxMama hears from Lorraine in New Jersey with these questions. “My father is giving us the cash to pay off our mortgage. How does this effect our 2008 income? Is paying off the mortgage a deduction?? How does gifting apply?”

Gifting Your Children

Today TaxMama hears from Pat in Florida who’s quite generous. “Can you explain the$10,000 gift tax exemption to me? I want to gift my children.” Dear Pat, Well, your children are certainly fortunate to have a mother like you. Interested in adopting me? First of all, the $10,000 gift tax exemption is $12,000 this year. […]

Receiving Foreign Gifts

Today TaxMama hears from Barbara in Oregon who has a question. “My parents (non US citizens) have sold their property in Argentina to an American. They asked him to transfer the $32,000 payment directly to me as a gift. Do I need to report this to the IRS? Will I be taxed on it? I […]

Gasoline Prize

Today TaxMama hears from Terry in Arkansas who’s angry. “Last week my employer offered a prize of gasoline coupons to employees who would fill out the annual employee opinion survey. I won. I received coupons redeemable for $50.00 of gasoline at the highest priced station in town, WITH a note congratulating me and informing me […]

Gift and an Exemption

Today we hear from Tracy in Florida who’s quite unclear. (Every once in a while, I like to show you an unedited question. See if you can figure out what she is asking.) “If you make $65,000 and you have a gift receipt for $90,000 (something you gave, not you were given) claim one dependent, […]

Tax on Barry Bonds’ Ball

Today we hear from Christine in PA who throws us this curve ball. She says, “I just saw on the news that the gentleman that caught Barry Bonds 756th home run ball is selling it because he can’t afford the tax bill for just possessing it. I’m not aware of the tax that would be […]