[EVO X]

4) Has Hunter reported the $2 million as income?

The way I understand this transaction is the person paying off Hunter's 2 million tax liability is a gift. Hunter has no tax liability. The person making the gift that exceeds reporting requirements has to report it to the IRS..

[Svartalfiar]

The way I understand this transaction is the person paying off Hunter's 2 million tax liability is a gift. Hunter has no tax liability. The person making the gift that exceeds reporting requirements has to report it to the IRS..

Yes, the donee is not responsible for any taxes unless they agree to do so. The donor is responsible for taxes on the gift, after a $15M annual exclusion, unless it's for tuition/medical debt, to a spouse, or certain charitable or political organizations.