Hi and welcome to our site!Gifts are not taxable income in the US.But stolen property is treated as illegal income. Regardless of criminal penalties - illegal income is taxable and is added to the taxable income.
So - the person who steel the money - if confirmed - will be required to include that amount into his taxable income.
but what does that do to the people who wrot if off as an expense but didn't know it was stolen
will the irs come back on them or could they
If you received the card as a gift - that is not a taxable income. It doesn't matter how you used funds.If the card was stolen - you might be required to return it back - but that is not your taxable income - because you did nothing wrong.
they were gift cards they purchased through work not credit cards does that make sense
just trying to see what the people need to do that was given this gift. the lawyer is asking the recievers of these gifts to write down how much roughly was given to them. just want to make sure they aren't able to come back on them. trying to be a good friend
I realize it isn't taxable but can anything be done to them sense they wrote it off as a medical expense. that is what it went towards. have reciepts
If these cards are stolen - you might be asked to pay back by a criminal court.That is not a concern of the IRS. From the IRS prospective - that is a gift and it is not taxable.How to use funds and if your expenses are deductible - that would not be affected.Because teh gift i snot taxable - if you will be required to pay it back - there will not be any deduction from that repayments.
the person who stole the money is working with them and is paying back whatever they decide on. they aren't asking the recievers anything except a written statement of what was given to them
Ok - t5hat will make issues less complicated. So - the person who stole the property will pay back from his/her own funds - and gift previously made would not be affected.
What I said - the gift in not TAXABLE income for the recipient,However the donor generally may not deduct the gift,Indeed - only gifts to qualified charitable organizations are deductible.But gifts to any specific persons or gifts that benefit any specific person may not be deducted by the donor.
If you paid medical expenses - such expenses are deductible regardless which money you used. Bt that doesn't mean you are deducting a gift - you are deducting your medical expenses that you paid.