Agree - yes
A comment on the 12K "gift". It is virtually impossible in an employer-employee relationship to have this considered as a gift. It is compensation, income to the employee and deductible by the employer. The Courts have ruled on this many times.
Section 102(c)(1) requires an employee to include in his/her income "any amount transferred by or for an employer to, or for the benefit of, an employee". The Supreme Court in Commissioner v Duberstein said only in "exceptional" circumstances could a transfer between an employer & an employee be a gift in the statutory sense. If the relationship is "personal" then you may have a gift or if it represents a real wedding or birthday present you may have a gift.
New York Enrolled Agent
A comment on the 12K "gift". It is virtually impossible in an employer-employee relationship to have this considered as a gift. It is compensation, income to the employee and deductible by the employer. The Courts have ruled on this many times.
Section 102(c)(1) requires an employee to include in his/her income "any amount transferred by or for an employer to, or for the benefit of, an employee". The Supreme Court in Commissioner v Duberstein said only in "exceptional" circumstances could a transfer between an employer & an employee be a gift in the statutory sense. If the relationship is "personal" then you may have a gift or if it represents a real wedding or birthday present you may have a gift.
New York Enrolled Agent
Comment