Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I receive a loyality payment once a year from a business…

I receive a loyality...

I receive a loyality payment once a year from a business that I used to do business with....they do not report it to the IRS do I pay income tax on it

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I used to own a business that worked with a manufacturer that would "put side" a portion of the cost I paid for good into a loyalty account and once our contracted time was up that loyalty fund was returned to me in an annual payment

Accountant's Assistant: When we are ready I'll take you to the appropriate web page.

Ok

Accountant's Assistant: Is there anything else the Accountant should be aware of?

My husband and I file jointly nd both have W2 jobs unrelated to the mentioned question

Show More
Show Less
Ask Your Own Tax Question
Answered in 47 minutes by:
3/17/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,678
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there.

Ask Your Own Tax Question

I'm so sorry, but yes, this is income ... The only time that property received (cash is property) is not taxable is when there is ABSOLUTELY nothing that was given, or will be given, in exchange. (The tax code calls this a gift).

...

Gifts are excluded from income under IRC § 102

...

But again, gifts are considered as gifts ONLY when nothing was ever done to receive them.

...

The seminal case on this is Commissioner vs Duberstein

Ask Your Own Tax Question

In Duberstein:

...

:Berman was president of Mohawk Metal Corporation. Duberstein was president of the Duberstein Iron & Metal Company. They would often talk on the phone and give each other names of potential customers. After receiving some particularly helpful information, Berman decided to give Duberstein a gift of a Cadillac. Although Duberstein said he did not need the car as he already had a Cadillac and an Oldsmobile, he eventually accepted it. Mohawk Metal Corporation later deducted the value of the car as a business expense, but Duberstein did not include the value of the Cadillac in his gross income when he filed his tax return, deeming it a gift. The Commissioner asserted a deficiency for the car’s value against Duberstein. The Tax court affirmed."

Ask Your Own Tax Question

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars on your screen, and then clicking “submit")

That’s the only way JustAnswer.com will credit me for the work.

...

I hope you’ll rate me based on accuracy and thoroughness, rather than any good news / bad news content

But again, let me know if you need more here,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,678
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,678
14,678 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My husband and I recently opened an LLC together, registered
Hi! My husband and I recently opened an LLC together, registered in WY. The company's scope is broad, we using it for 1. Getaround - A car rental service we use to rent out our car 2. AirBnB - A home … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
If a spouse is in a job and also a member of the LLC his
if a spouse is in a job and also a member of the LLC his wife started, what would be the implication on the husband's tax filing? The husband plans to invest money in the LLC from his salary. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
I'm trying to figure out how to enter community property
I'm trying to figure out how to enter community property addition and subtraction adjustments. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
I have a question about my small business and invoicing. New
Hello, I have a question about my small business and invoicing. … read more
Lane
Lane
JD, CFP, MBA, CRPS
Doctoral Degree
14,678 satisfied customers
Open a business - Sales of Warranty contracts and wanted to
Open a business - Sales of Warranty contracts and wanted to add sales of specialty jewelry. Have an EIN assigned for the Sales of Warranty and have been filing taxes on time. The business was opened w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My husband and I got married in June last year and we will
My husband and I got married in June last year and we will be filing taxes jointly this year. My husband is a small business owner and runs a corporation that was set up prior to us being married. In … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I just moved in mid-March from TX to CO and my company (in
I just moved in mid-March from TX to CO and my company (in TX) put me on contract to do work on an as-needed basis. I have not received my contract from the company or a payment as of yet and I expect… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
What the best way to file our taxes? My husband and I
What the best way to file our taxes? My husband and I normally file married filing jointly (home and business). 1) my husband has a trucking business (LLC) and he has 1 employee who's 1099--but he doe… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I hired a company to reside our house and paid them 20% down
I hired a company to reside our house and paid them 20% down in August of this year. We were then told that because of the long waiting list they were unable to do the work until December. We didn't f… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
Im putting together a series of website. I would like a second
I'm putting together a series of website. I would like a second person to come in to maintain the sites They would apply for Adsense and affiliate commissions under their name and pay all relevant tax… read more
Lane
Lane
JD, CFP, MBA, CRPS
Doctoral Degree
14,678 satisfied customers
Based on your response, I decide to stay put in the Bay area
Based on your response, I decide to stay put in the Bay area and use the Tahoe house as the weekend home. I have a primary job working as an Electrical Engineer (W2 basis), and work on software develo… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
My husband and I bought a small business six years ago. I had
My husband and I bought a small business six years ago. I had no experience as a business owner at that time and my naivete and blind trust in my husband, I now believe has come back to haunt me. We h… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I wish to hire a consultant who will work at my clients site.
I wish to hire a consultant who will work at my client's site. The staffing contract I have with this client requires all our consultants to be w2 employees. This consultant has his own company that h… read more
Lane
Lane
JD, CFP, MBA, CRPS
Doctoral Degree
14,678 satisfied customers
My husbands job requires him to have a vehicle for which fits
My husbands job requires him to have a vehicle for which fits certain requirement and therefore receive a monthly vehicle allowance. Upon receipt of his W2 it is noted that the income showing includes… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
How are home sales reported to IRS when the manufactured home
How are home sales reported to IRS when the manufactured home dealer buys land for a custom job?… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master\u0027s Degree
2,290 satisfied customers
I live in Utah and my husband runs a ranch for a person who ...
I live in Utah and my husband runs a ranch for a person who lives in California. We are confused on some things he has been doing as far as money and taxes. First of all on my husband's paycheck there… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
My husband is the sole proprietor of his unincorporated ...
My husband is the sole proprietor of his unincorporated company. We file jointly. He wants to retire now at age 62. I would like to buy the company, pay him a small wage to continue to run it, but he … read more
Wayne Brasch
Wayne Brasch
Accountant and Business Consultant
Master Degree
718 satisfied customers
the value of remaining a stay at home mom vs a little extra income
my husband works full time and earns $126,000 including bonuses for the year. I currently stay at home and look after the children but am considering beginning some work from home selling through a we… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master\u0027s Degree
3,197 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x