Plastic2Oil Inc (PTOI)

[Johnik]

Gift taxes?!

The US gift tax (when required) ordinarily is collected from the person making the gift, not the one receiving it. From IRS Publication 950:

No tax payable by the person receiving your gift or bequest. Generally, the person who receives your gift or your bequest will not have to pay any federal gift tax or estate tax because of it. Also, that person will not have to pay income tax on the value of the gift or inheritance received.

http://www.irs.gov/publications/p950/ar01.html#d0e35


The exclusion from income under the tax code:

(a) General rule
Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.

http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000102----000-.html


This is not to suggest that the IRS would be without remedies in the case on noncompliance (or fraud), but we would have to make far too many assumptions to make this possibility a worthwhile discussion.

I am not familiar with Canada tax laws, so if someone can show me that someone receiving a gift in Canada must pay gift tax as a result, I am all ears.