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Other Income

Posted by dakota1 on 02/17/2009 - 15:28

I received a car from my boss as a gift for the year, I guess it could be called a bonus, not sure. Anyway, so when this year taxes came along I recieved a call stating that I was going to have to pay taxes on this. I then recevied a other income IRS paper in the mail for the amount of 10,000. Do I have to pay this,cause you do not have to pay taxes on a gift for under 12,000, and if so how much is going to be? Also, the car did not cost that much so I do I fix the amount.

Thanks

Sarah

Sarah Martz

  • 1339 reads


The car is not a gift

Since that is the relationship between employer and employee, the car is generally not counted as a gift. If it is a gift, your boss (donor) has to pay for it anyway. However, in your situation, the car is a kind of compensation or bonus that your employer provided. Therefore, the car is taxable, and you have to pay for it base on its fair market value .

Posted by Anonymous on 02/19/2009 - 13:29
  • 1 read
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