... from my employer, and need to know if I should consult with a tax attorney, OR, a CPA to get the very best advice on how to minimize my tax burden legally.
In other words, which professional would give me the most comprehensive advice?
Thanks!
2007-09-26 05:42:00 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
wartz. My employer is a long-time friend, and he's going to give me the property, but from what I've been told, an employer cannot "give" a gift to an employee due to their professional relationship. BUT, really, I'm not looking for an answer to my tax problem, what I'm looking for is advice on whether a tax attorney, or a CPA will be best to go with. Thanks.
2007-09-26 05:59:15 · update #1
A CPA would be the best place to go. They would have the most hands on experience in dealing with the tax burden the property is going to place on you.
And if for some reason they need more information they will already have a relationship with a tax attorney who they can consult.
2007-09-26 05:52:12 · answer #1 · answered by arimarismacon 3 · 1⤊ 0⤋
If your employer is giving you a gift, which is not a bonus and your employer will not claim it as a business deduction, then you don't need any advice from a tax attorney or CPA. The person who receives a gift does not pay any gift tax or file a gift tax return. You won't have any tax burden because of the gift.
Your employer will have to file gift tax return if the value of the property is more than $12,000.
2007-09-26 13:41:23 · answer #2 · answered by MukatA 6 · 2⤊ 0⤋
You do not pay tax if you have received a gift and you will have no tax burden. The donor must pay gift tax if the gift exceeds a certain amount (Federal is $12,000 per year per person less a lifetime exclusion.)
I would question why your employer is giving you a gift instead of, for instance, a bonus, which would be ordinary taxable income to you and a business write-off to the employer.
(I'm an enrolled agent, licensed by the US Treasury Dept to represent taxpayers the same as CPAs and attorneys.)
2007-09-26 12:52:43 · answer #3 · answered by Anonymous · 0⤊ 2⤋
Sorry, but any "gift" you receive from an employer is considered wages and is fully taxable to you. The value of the "gift" MUST be included on your W-2 along with all other wages. Also, taxes must be withheld on the value of the "gift" (normally at 25%) of the value when the "gift" is given to you.
There's no way to minize the tax burden, aside from maxing out your 401(k) for the year if possible. Any other tactic will cost you more than the tax savings and is therefore not worth pursuing.
2007-09-26 12:49:00 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋