I've been reading all these threads and now I'm a little confused about gifts. Do I need to include gifts in my income to determine the means test if I received it in the six month look back? What about school reimbursement?
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I just had to look into this myself...as I understand it, 'gifts' are treated as income by the BK trustee and can affect your six month look back....
OTH, "gifts under $10,000 in one year are not treated as TAXABLE income by the IRS.
So, two different entities .
If I'm wrong someone will correct me. -
I have a correction and some clarification, not that they are really relevant to BK.Originally posted by ryan View Post
Currently, gifts of under $13,000 in one year are not taxed by the IRS. Even though gifts of over $13,000 in one year to the same person are considered taxable and must be reported on a gift tax return, no tax is paid until the giver makes reportable gifts (i.e. over $13k per recipient per year) of over $1 million in his/her lifetime. The IRS does not tax gifts of any amount as income. Gifts are subject to gift tax at a rate which is currently equal to the top income tax rate. Gift tax is paid by the giver, not the receiver.
As I understand it, unlike the Internal Revenue Code, the Bankruptcy Code makes no distinction between income and gifts.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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