A Taxing Question

[John Formsma]

Alan,

Gifts are not taxable.  HOWEVER!  <G>...I do think what you received
is really a tip.  It was given as appreciation for good service.  And
I think the box on the tax return says something like wages and tips.
I'd ask your accountant.

Now, if you were to send me the $200, it would not be taxable because
it would be a gift from you to me...totally unrelated to business.  I
would write you a thank-you note if you do that. ;-)  It would, of
course, go to a great charity...the John Needmore Fund.

JF

On 8/3/07, Alan Barnard <tune4u at earthlink.net> wrote:
>
>
>
> Tuned a Steinway M today that did belong to one customer, now belongs to
> another, who has become a good friend over the years. I had been on the
> lookout for the right piano for this gentleman for a couple of years and
> introduced the two people.
>
>
>
> After tuning it, he wrote me a check and said "I'm adding $200 to this in
> appreciation for finding me this great piano."
>
>
>
> "Wow," says I, "Thanks". It was a total surprise because I had not asked for
> or expected any finders or sellers fees and really didn't do much more than
> make a couple of phone calls.
>
>
>
> Question: Is this $200 a gift, or is it a "fee" that I have to report as
> business income for taxes?
>
>
>
> Seems like a grey area to me.
>
>
>
> Alan Barnard
> Salem, MO
>