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 >
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