Quote:
Originally Posted by ScotchOnDaRocks
I think he might be right, anything above a 16K gift is taxable
This “gift” was given during a session but it might be up for debate whether it’s a poker gain or loss. Poker profit is more preferable as can offset it with losses
I’m 120 credits short of my accounting degree, does Robbi have 135K poker profit and tax liability of a 135K gift? Lol
The $135K will require a gift tax return, but she is unlikely to incur a tax payment/liability on it. Anything in excess of $16K annually just goes against your $12M lifetime gift exemption.
https://www.policygenius.com/taxes/guide-to-gift-tax/
"In 2022, you can give any individual up to $16,000 without you having to pay any tax on that gift. When you give someone money or property worth more than $16,000, the Internal Revenue Service (IRS) may require you to pay federal gift tax on the gift value above $16,000. There are no state-level gift taxes.
A “gift” is anything that you don’t expect to receive fair payment for. That includes giving money, investments, property, and any other tangible or intangible assets.
You will need to file a federal gift tax return if you gave any gifts that exceed the $16,000 annual exclusion, but you don’t actually have to pay gift tax unless you have also exceeded your lifetime exclusion, which is $12.06 million in 2022.
Your lifetime giving limit is also the same as the federal estate tax exemption, so giving large gifts increases the likelihood that your estate will owe tax after you die (though very few estates qualify for estate tax)."