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Thread: Gifts making me look suspicious?

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    Moderator Miss_McKenna's Avatar
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    Default Gifts making me look suspicious?

    Hey guys,

    I'm in the middle of doing my taxes online with TurboTax, and I'm a bit confused about something. Nothing that came up on the "search" really helped.

    Last year I earned about 6K from dancing, which I'm claiming as income, but I also received money as gifts from a sugardaddy, and from my parents. They live in the U.K but they send me money monthly for rent and things while I'm in school. They don't claim me as a dependent though, so I'm filing individually.

    Isn't it going to look suspicious if I claim 6K but there's records of12ishK going into my bank account? I deposited the money from my parents and my SD as cash installments and I've no idea how to prove where it came from if I was to be asked.


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    God/dess Paris's Avatar
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    Default Re: Gifts making me look suspicious?

    There should be somewhere on your tax form to report gifts and who gifted you. I don't really know all that much about the tax limits on gifts from family or strangers, but I know there is a limit to the amount you can receive tax free per year (the number $10000 comes to mind, but I'm not sure).

    You may want to talk to a tax preparer. This is a pretty common tax filing situation.


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    Default Re: Gifts making me look suspicious?

    Unless "other" arrangements are made, a gift tax is paid and reported by the donor. Exemption is 12k per individual (13k effective 01/09).

    I posted the IRS links in this subforum already.

    EDIT:::http://www.stripperweb.com/forum/sho...d.php?t=128667

    http://www.irs.gov/businesses/small/...164872,00.html
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    Default Re: Gifts making me look suspicious?

    If the amounts you received were "gifts", and not made as any payments for goods or services then ...

    SIMPLE ANSWER: DON'T WORRY

    You, as the recipient, do not need to report the income, and you will not have any tax burden.


    Extra background ....

    As Glabman said above, only the Donor would have to report the gift if was over $12,000 in a tax year AND even he would not actually have a tax burden on his gift(s) unless the amount over $12,000 had totaled over $1 million in total gifting in his life. ... Another words, you don't have to worry about it.
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    Default Re: Gifts making me look suspicious?

    I can say that 'gift' filings, even when done correctly do draw more attention than none at all, so keep that in mind but nothing to worry about if you are doing everything legally and proper.

    cash income + reported receiving gifted money = an account worth looking into as far as IRS and other national revenue agencies are concerned.
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    Default Re: Gifts making me look suspicious?

    but also keep in mind that, where the IRS is concerned, there is precedent that payments made by a 'sugar daddy' to a 'stripper' can be interpreted as payment for services rendered rather than as a gift. And payment for services rendered is fully taxable to the recipient.

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    Default Re: Gifts making me look suspicious?

    Quote Originally Posted by Melonie View Post
    but also keep in mind that, where the IRS is concerned, there is precedent that payments made by a 'sugar daddy' to a 'stripper' can be interpreted as payment for services rendered rather than as a gift. And payment for services rendered is fully taxable to the recipient.
    I never had a problem with me paying a gift tax, the rate was higher than what she would have paid. it was down to 45% last year. (To strippers as well as nonstrippers).

    I also have not had a problem when the stripper wants me to pay her 'corporation' the amount+some of the gift tax (50-100%) and she pays the taxes.

    I have also not had a problem in keeping the car when she walks before the terms of the agreement expire. Titled to her but with a lien to me, and a contract for the terms of the car in writing/ signing.
    Quote Originally Posted by The Snark View Post
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    Default Re: Gifts making me look suspicious?

    Quote Originally Posted by Miss_McKenna View Post
    Hey guys,

    I'm in the middle of doing my taxes online with TurboTax, and I'm a bit confused about something. Nothing that came up on the "search" really helped.

    Last year I earned about 6K from dancing, which I'm claiming as income, but I also received money as gifts from a sugardaddy, and from my parents. They live in the U.K but they send me money monthly for rent and things while I'm in school. They don't claim me as a dependent though, so I'm filing individually.

    Isn't it going to look suspicious if I claim 6K but there's records of12ishK going into my bank account? I deposited the money from my parents and my SD as cash installments and I've no idea how to prove where it came from if I was to be asked.
    I wouldn't sweat it. Report your $6k of income and move on. You're below anyone's radar and you have an easy out, your parents gifted you the money (they can gift $12k each, so you could receive $24k from them and it would not be taxable).

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    Default Re: Gifts making me look suspicious?

    Reminder: her parents are in UK. So any gift tax is subject to UK laws, not US laws.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

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    Default Re: Gifts making me look suspicious?

    Quote Originally Posted by Miss_McKenna View Post
    Hey guys,

    I'm in the middle of doing my taxes online with TurboTax, and I'm a bit confused about something. Nothing that came up on the "search" really helped.

    Last year I earned about 6K from dancing, which I'm claiming as income, but I also received money as gifts from a sugardaddy, and from my parents. They live in the U.K but they send me money monthly for rent and things while I'm in school. They don't claim me as a dependent though, so I'm filing individually.

    Isn't it going to look suspicious if I claim 6K but there's records of12ishK going into my bank account? I deposited the money from my parents and my SD as cash installments and I've no idea how to prove where it came from if I was to be asked.
    This is exactly why I recommend a business checking account for stripper income. Keep your business separate from your personal. Deposit the gifts from your parents and the gifts from your SD in the personal account.

    From a practical point of view, you are not looking at a lot of taxes either way, so don't sweat it. Report the $6,000 on schedule C, report your dancing expenses there and do not report the other $6,000 +/- at all. Gifts are not reportable income. If you do report them then the IRS is entitled to presume they were income. The first and most important step is not to report.

    HTH
    Z

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    God/dess Zofia's Avatar
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    Default Re: Gifts making me look suspicious?

    Quote Originally Posted by threlayer View Post
    Reminder: her parents are in UK. So any gift tax is subject to UK laws, not US laws.
    The UK has a 3000 pound per donor per donee exemption from the inheritance tax. Same basic rules as the US, only a differnt amount. Above 3000 pounds per donor per donee, then the donor[s] have to pay the inheritance tax. The wise, and wealthy British taxpayer, even more so than her American cousins, is actively giving away her money on an annual basis rather than facing the crushing British inheritance tax burden.

    HTH
    Z

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