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Subject Author Date
self employment income? Gil Faver 03-08-2008
Posted by dpb on March 9, 2008, 10:00 pm
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 GSalisbury wrote:
...
> OP said "...agreed to help her mother and aunt ..."
> Isn't that family?
> Don't families do each other favors?
> Families sometimes say thanks presheateit

Except OP also said "_will_ receive" and the fact it doesn't seem to be
clearly a gift to the OP makes it look far more like a bribe than a
gift... :)

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Posted by GSalisbury on March 10, 2008, 10:56 am
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> GSalisbury wrote:
> ...
>> OP said "...agreed to help her mother and aunt ..."
>> Isn't that family?
>> Don't families do each other favors?
>> Families sometimes say thanks presheateit
>
> Except OP also said "_will_ receive" and the fact it doesn't seem to be
> clearly a gift to the OP makes it look far more like a bribe than a
> gift... :)
>
I guess ", somewhat reluctantly, " does make that case.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Stuart Bronstein on March 10, 2008, 2:37 pm
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>>
>>>I'm not a tax guy but...
>>>Why wouldn't it just be a gift for doing all of the work and move
>>>on?
>>
>> Because you don't get gifts for doing work, you get pay.
>
> OP said "...agreed to help her mother and aunt ..."
> Isn't that family?
> Don't families do each other favors?
> Families sometimes say thanks presheateit

Money given in exchange for services, even if not legally required to
be paid, is considered by the IRS to be taxable income. It's not
exactly the same, but look at a tip given to a waiter in a restaurant.
You have no legal obligation to leave one, and the size of the tip is
also up to you. However you give it because you received services, so
it is not a gift. It is taxable income.

Stu

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Gil Faver on March 10, 2008, 4:01 pm
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>>>
>>>>I'm not a tax guy but...
>>>>Why wouldn't it just be a gift for doing all of the work and move
>>>>on?
>>>
>>> Because you don't get gifts for doing work, you get pay.
>>
>> OP said "...agreed to help her mother and aunt ..."
>> Isn't that family?
>> Don't families do each other favors?
>> Families sometimes say thanks presheateit
>
> Money given in exchange for services, even if not legally required to
> be paid, is considered by the IRS to be taxable income. It's not
> exactly the same, but look at a tip given to a waiter in a restaurant.
> You have no legal obligation to leave one, and the size of the tip is
> also up to you. However you give it because you received services, so
> it is not a gift. It is taxable income.
>
> Stu


aw, Stu. You are answering the easy question here. Any opinion on whether
it is self employment income? thanks.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Gil Faver on March 9, 2008, 10:13 pm
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>
>> taxpayer has, somewhat reluctantly, agreed to help her mother and aunt
>> substantially remodel a small rental bungalow so that it might once again
>> be rented. Aunt and mother stand back and do nothing, and taxpayer has
>> all the interaction with the contractor, etc. Property is owned by
>> mother and aunt, and not at all by taxpayer. Taxpayer will receive a
>> small amount for her efforts, say $5,000.00. Is this self employment
>> income to taxpayer? She is not in the business of renting property (this
>> or others) owned by her, nor is she in the business of remodeling.
>> --
> I'm not a tax guy but...
> Why wouldn't it just be a gift for doing all of the work and move on?
> Geo. S.

not a gift. So, any thoughts on the self employment income questions?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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