[M Kehoe]

Foolish statement

From the tax code...

If you gave any one person gifts valued at more than $11,000 in 2003, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.

The person who received your gift does not have to report the gift to the IRS or pay either gift or income tax on its value.

You make a gift when you give property (including money), or the use or income from property, without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.

For easy reference check...

IRS Publication 17, Your Federal Income Tax
IRS Publication 575, Pensions and Annuity Income
and
IRS Publication 590, Individual Retirement Arrangements (IRAs) for gifts to individuals.

5.56mm

[Glenn]

If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.

Dang. Does this mean I have to pay taxes on my losses at eBay?

[ClintonBeGone]

Thanks.