I have some cash and cheks from my parents, relatives, and some others for some reason, but it's less than 10,000$.
Is that O.K. deposit on my account and report only money from
my pay check?, in other words, which money is tax free?
2007-05-30 14:56:50 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If the income you received from your parents, relatives etc was a gift from them to you... then it is not taxable.
2007-05-30 15:21:45 · answer #1 · answered by Anonymous · 2⤊ 0⤋
technically, all income should be reported. Gifts have a special condition in that they are not deductable by the doner and may not be taxable for the receipient. If anyone is deducting the cash dispursement, then you will eventually be audited by the IRS. I would recommend discussing your specific case with a CPA who can advise tax shelters should your income be deemed taxable.
Note: DO NOT WAIT for the IRS to audit you as they will watch your accounts for years as penalty and interest develop. The few thousands you don't pay now can become tens of thousands in a year or two.
2007-05-30 22:46:04 · answer #2 · answered by Fancy That 6 · 0⤊ 3⤋
If they were gifts, you don't need to report them. They aren't taxable. If you got money from relatives for example for doing work for them like remodeling their kitchen or something, then it would be reportable and taxable.
2007-05-30 23:30:10 · answer #3 · answered by Judy 7 · 1⤊ 0⤋