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You don’t say what country, but in U.S. there are no reporting requirements for a gift from/to any person unless it is over $12,000/year. If more than that, it has to be reported, but no tax is due unless it exceeds a $1 million lifetime exclusion. If there is any tax due, it is due from the gift giver.
For other countries, check with whoever collects income tax.
3 Comments
January 7th, 2010 at 6:00 pm
why would you pay income tax on a paid bill? he’s not paying you, so it’s not income.
January 7th, 2010 at 6:31 pm
What? Of course not!
Even if he’s giving you the money directly as an income!
How would they find out? They won’t!
January 7th, 2010 at 7:14 pm
You don’t say what country, but in U.S. there are no reporting requirements for a gift from/to any person unless it is over $12,000/year. If more than that, it has to be reported, but no tax is due unless it exceeds a $1 million lifetime exclusion. If there is any tax due, it is due from the gift giver.
For other countries, check with whoever collects income tax.