Class 4, Exclusions For Donative Transfers

Question 1

Gifts and inheritances
IRC §102(a)

Answer 1

• Gross Income exception: gifts,devises, bequests, inheritances
• if property is acquired by gift, bequest, devise, or inheritance, then value of property does not count as gross income to recipient.

Question 2

Income Tax meaning of gift

Answer 2

Item of income will qualify as gift for income tax purposes if it comes from detached and disinterested generosity out of affection, respect, admiration, charity, or like impulses
- donative intent and state of mind of person making a gift.