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what's the law as far as cash gifts? HELP!

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mymymy

Member
What is the name of your state? FL

I have a really tricky question.

My mother in law came down from NJ to help out after I broke my foot and lost my job. She ended up staying for several months because we had yet another medical tragedy.. so, she was here from July 2004 to April 2005, with a couple of trips home in between.

While she was here, I gave her free reign with my accounts to do her ebay business. My ebay account, paypal account and checking account. Without going into too much detail other than to say she didn't want her daughters back in Jersey to have access to her money while she was down here, she basically transferred her money into our account, withdrew as she needed it and helped us with the bills, when needed. So, the monies she contributed to the household were for herself and money gifts to us.

Are these money gifts income for us? The IRS says no (way under 11,000) and she is not required to report it either. But, what does the bankruptcy court say? I did not list this money as income on my peition, there was no question concerning getting gifts- only giving gifts and "other income" did not seem to fit. I have not had my 341 yet and wonder if I should ammend or am I opening a can of worms that need not be opened?

Help!
 


mymymy

Member
bigun said:
A gift is not income. Just be prepared to show where the money was spent.
You're an Angel.

And I can do that! One good thing is.. we never carry cash. I mean no more than 20 bucks at a time. Everything comes off our check card.. food, bills, gas, cigs everything.

Gawd, the trustee isn't going to question how much pizza we eat, is he? LOL ( I'm kidding.. we get pizza or chinese take out twice a month and have a family dinner out for bdays and stuff.. nothing too extraordinary) :rolleyes:
 

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