About the $30,000 given to Ruckman. I have had to research 10,000 pages of IRS guidelines, documents and forms for over a six month period. this is what I have found out.
1) a cash gift given to any one person directly is non taxable
2) If the money was first sent throught a taxexempt org designated to an individual. then it can be called income from the taxexemt org go between. the tax exempt org needed to give him a 1099 this is called "donator designated giving" by the IRS and is taxable to the tax exempt org it is sent through. so if they don't want to pay tax on it they have to send out 1099's to the individual receiving the designated funds, i.e. a missionary, traveling evangelist, etc...
3) some states have an inheritance tax but if it is not written in a will (which is a legal taxation document) it cannot be called inheritance.
seeing the gift was made in cash and it was one person giving it for another (not organizations) it is a direct gift from the deceast and it is not taxable unless Ruckman wants to claim it as income then it is. seeing it was a gift no one receiving it needed to claim it as income for no services were renedered for it.
Last edited by chette777; 10-20-2008 at 01:58 AM.
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