Marcia received a gift from her mother.She must include it as part of her gross income,and her mother may deduct it as an itemized contribution.

Question

Quizplus · Accepted Answer

Gifts are generally not considered taxable income for the recipient and are not deductible for the giver. There are exceptions to this rule, such as gifts given by an employer to an employee or gifts that are substantial enough to trigger gift tax obligations. However, in the scenario presented in the question, the gift given by Marcia's mother would not be taxable income for Marcia and would not be deductible for her mother.

Marcia Received a Gift from Her Mother