Hey guys...I need to figure out the tax my mother will owe on her NuiTech 2k GC and after much frustration got off the phone with the IRS. They sent me to the 1040-es to estimate my taxation...The tax figures are up for 2006 and my question is this.
Would i be to far off when figuring her taxation on the gift if i simply add it to her income and use that percentage??
Her income = 34,000
People with an income of $30,650-$74,200 are taxed at $4,220 + 25%
Her GC = $2,000
Her tax on the giftcard = 25%
Basically i know there are many things that go into the equation such as exemptions, deductions, and credits but im trying to figure an estimated rate of taxation for her giftcard as well as a plasma t.v. for myself as i make around $7,500 a year figuring my taxation at $755 + 15%...So 15% of the T.v. cost im expected to pay...
Basically i've searched the forum as im a daily visitor and a helpful member of this community. I've tried my best to get a feel for what my taxation may be and have spoke with the IRS a few times at this point. I know i can't figure out an EXACT taxation of the gift but even a rough estimate would greatly help out....
i think ur best bet, would put the gc in the column of any added income or extra cash received as gifts, which could be added to her total income or maybe even taxed less if its considered a gift tax. my 2 cents.
Yeah, next time ask a mod to move your topic, don't create a dupe.
And as you were told on that other topic, nobody here can give you specifics on your tax situation.