tax question

[int_josh]

Say someone deposits 100$ dollars into my bank to go and buy something for them, do I have to report this 100$ to IRS?

What if a close family member deposits 100$ into your bank account, is this considered to be an income?

 

[$5 Submissions]

Any deposit into your bank account is PRESUMPTIVELY (legal term of art meaning they assume this is the case) income. You can REBUT that presumption by claiming:

a) it's a loan (need an agreement - written or oral - for this)
b) it's a gift (no income tax for the recipient but giver gets hit by tax if gift is over $11K)

In your situation, the cash is income since it didn't fit any of the scenarios above. The good news is that it is offset by the fact that you SPENT it (ie., expense).


Disclaimer: This post is just for discussion purposes only. Consult with a qualified attorney in your jurisdiction.