The Tax Questions Blog

Posts Tagged ‘gift cards taxable income’

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Question: If a friend gives you a large sum of money as a gift, is that taxable income?

Answer: Lucky you! The recipient of a gift doesn't pay tax. If the gift is over $11,000, the person who gave it to you may owe gift tax. So, the good news is that you've just received money tax free. Thank your friend profusely and take him/her out for a fine dinner!

Business Mastery: A Guide for Creating a Fulfilling, Thriving Business and Keeping it Successful $23.18 This best-selling business manual for wellness practitioners covers the major aspects of building and maintaining a successful practice. The all-new Fourth Edition is completely updated and includes information about how to effectively negotiate, keep up with the latest research, deal with difficult clients, increase career longevity, and attract first clients. Practical tools and tips teach how...

Life Organizer: The Essential Record Keeper and Estate Planner $21.99 Do you remember where the deed to your house is, what you paid for the painting hanging over your mantle, where your life insurance documents are? Have you photographed your belongings? Have you thought through your estate planning? Does anyone know what to do if something happens to you? Does everyone know what your wishes are?Life Organizer: The Essential Record Keeper & Estate Planner is the pe...

Wills, Trusts, and Estates Administration $109.65 Trusted for more than thirty years, WILLS, TRUSTS, AND ESTATE ADMINISTRATION, 7th Edition introduces the basics of estate planning and bequeathing property through wills and trusts, along with the laws and procedures involved. In addition to relevant laws, the text covers court procedures, cases, tax implications, ethical considerations, and the roles paralegals and other professionals play in the...

Dirty Dozen tax scams of 2011

Hiding income in offshore accounts, identity theft, return preparer fraud, and filing false or misleading tax forms top the annual list of “dirty dozen” tax scams in 2011, according to the Internal Revenue Service.

Question: Would this be considered taxable income?

There's a website that sells gift cards and prepaid cards at a discount. Ex. The value of a card may be $100 but only sells for $90. That's a$10 profit! If I do it every day, it's $70.wk. Since I'm not really working for the money and I'm just purchasing gift cards, would this bec considered taxable income? I was planning on purchasing a prepaid card worth $100 for$80. I would then take the prepaid card to an ATM machine and withdrawal all the money and put it in my checking account with a $20 profit. I'd do this once a day or a week. Sources?
I'm not selling the cards, just buying them at a discount and then getting the full value of them at the ATM machine.
I meant prepaid Visa debit cards.

Answer: 1. Prepaid gift cards are not refundable at ATMs.
2. You'd have to buy something with the card, then sell it to get the cash. If you buy a $100 gift card for $90 and then sell the item you bought for $91 to $100, you'd have $1 to $10 in profit. Chances are you won't be able to do that.
3. Lastly, you may be abetting someone else who is STEALING from the company. Discounted gift cards would be available to employees only. The employee is limited to using the cards themselves are giving them as gifts. Selling them on eBay is theft.

Some of the gift cards available were unwanted gift cards, but if you are buying from someone who sells all the time, that's got to be an employee.

The Biggest Money Mistakes Couples Make

Failing to talk about finances and combining money too early can cause financial stress.