Engagement ring

[ChEAr$]

Speaking of gifts, as erchess has below, just this morning on Headline news channel was a story about a fellow who broke off the engagement and former fiancee is refusing to return the ring. Ring cost the fellow $ 17,000, so no wonder he wants it back. His lawyer says such a ring is a contract and must returned therefor.

As I recall there are different laws in the states regarding whether or not it is a contract, or just what happens. But state laws aside now, I just wonder if the fellow filed a gift tax return. If he did, then that filing would be prima facie evidence of his intentions.

What do you think?

[JohnH]

Either a gift tax return or a 1099-Misc, depending upon the circumstances.

[Gene V]

ChEAr$,
Read some of your comments in 2007

http://www.thetaxbook.com/forums/showthread.php?t=5724&highlight=engagement+ring

[ChEAr$]

ChEAr$,
Read some of your comments in 2007

http://www.thetaxbook.com/forums/sho...ngagement+ring

As Yogi Berra was/is fond of saying, "It's deja vu all over again."

yes, I remember those, Gene.

[JohnH]

Do you remember or notice that two participants in that thread were later banned? I hope it isn't a trend or precedent of some sort.

[taxea]

I don't know whether this is stated in any law or whether it is just a long going tradition but my understanding is, as a rule, if the male does the breaking up the female keeps the ring. If the female does the breaking up the ring goes back.

If it were the case of the female refusing to return the ring after breaking up with the male then I think a 1099 would be a riot....maybe even physically.

[Gretel]

I don't understand all this talk about 1099 in this situation.

1. It's supposed to be used by businesses, so unless male is in business of getting engaged.....

2. It's used for services, so unless ring was incidental to services provided......

[JohnH]

I think you're closing in on it.
Keep thinking about the second scenario...