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Taxtom
Taxtom, Accountant
Category: Finance
Satisfied Customers: 2364
Experience:  25 Years in preparing Personal and Business Tax Retuns
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I have a tax question. I receive payments for a lease purchase

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I have a tax question. I receive payments for a lease purchase agreement with a gold mining company on seven mineral right claims. This is reported on a 1099 misc. form to the IRS and I pay taxes on all except for $1000.00 to each of my four children as they have a small amount of ownership. I deduct the $4000.00 as mine expenses. Am I obligated to report their individual amounts to the IRS on 1099 misc. or should they report it as misc income?

Question #2. If I pay taxes on the full amount and gift them. Would they have any tax liability? Would I have to report the gift?

Taxtom :

Hello, 1. Your children can report it as miscellaneous income without the need for the 1099. 2. You can give a gift under $13,000 and receive a gift without any tax effects. Since it is under the limit you do not have to report the gift. Thank You Tom Please clicka ccept.

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