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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122534  
Subject: Who says... Date: 2/16/2002 8:24 PM
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Recommendations: 4 can't deduct gifts to family members?

Just when I thought I'd seen 'em all, had a first today at VITA. Nice little old lady, some interest, some pension, some SS, and a 1099-MISC for $4800 in royalties. After thinking "Oh @#%^, Schedule E," I asked her what it was for. "Oh, my son in North Carolina sends me $400 a month to help out."

I explained that such gifts aren't taxable to her, and if the IRS should inquire about the 1099, she should just explain the situation. I didn't explain the private glee I'll feel when the IRS inquires of the son about the $4800 royalties deduction on his Schedule C. Probably won't happen, but I can dream.

Phil Marti
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