@Francis,
Francis wrote:
David wrote:or do u take a different vu
It IS a different view.
When you receive a gift, say, 1 million dollars, it's a income and you are taxable on that.
This raises new problems.
For instance, I knew a trial attorney who did so fine a job
that his firm gave him a $10,000 bonus, above his ordinary remuneration.
I am confident that the IRS deems that ordinary income, taxed as such.
If his employer was so happy with his achievements that he paid
that attorney 's income tax on the bonus, the IRS woud deem
the tax payment as additional ordinary income which is subject
to taxation and if employer re-imbursed attorney for such additional taxation
this woud go on in a cycle
ad infinitum.
U agree with that ?
On the other hand,
if I encounter
a stranger passing in the street
and give him $1,000, 000 then I owe a gift tax and the stranger owes nothing, in my opinion.
He did not earn the income.
I believe that is not taxable income, as distinct from the aforesaid attorney 's bonus.
I am not certain of whether this is inconsistent with your intent in what u posted.
Are u a tax lawyer ?