Q: If I gift my Casino Jackpot to a family member and they get to keep it do I still have to give part of it to the IRS?
A:
Your receipt of the funds is a taxable event for you.
Your gift of the funds has no impact on your tax liability.
Robert Kane agrees with this answer
A:
Under California law, when you win a jackpot at a casino, it is considered taxable income. The IRS requires you to report all gambling winnings as income on your tax return. If you decide to gift a portion of your jackpot to a family member, the tax implications can be complex.
Firstly, the initial winnings are taxable to you as the original recipient. You are responsible for the taxes on the entire amount of the jackpot, regardless of any subsequent gift you make. When you gift a part of your winnings, the gift itself may be subject to federal gift tax, depending on the amount.
It's important to consult with a tax professional to understand the specific implications of your situation. They can provide guidance on how to report your winnings and any gifted amounts, ensuring compliance with both federal and state tax laws. Remember, tax laws can be complex and vary based on individual circumstances.
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