Hi
I am in contract talks with my employer, and have been offered 15,000.00 retention bonus the first year, and 10,000 every year after as a "gifted" amount. Will this be subject to capital gains tax? If so. What is the best thing to do with it to get lower taxation.

Also, I am getting a sign on bonus in the amount of 10,000.00 as part of my salary. Is there a better way to get this?
Thank you!
Rebekah

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Originally Posted by dvmharris

Hi
I am in contract talks with my employer, and have been offered 15,000.00 retention bonus the first year, and 10,000 every year after as a "gifted" amount. Will this be subject to capital gains tax? If so. what is the best thing to do with it to get lower taxation.

Also, I am getting a sign on bonus in the amount of 10,000.00 as part of my salary. Is there a better way to get this?
Thank you!
Rebekah

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Unfortunately it does not constitute a gift. Your employer cannot gift you cash - it will be salary and taxed as ordinary income.

Agreed! Any money received from the employer is either:

- Compensation.
- Reimbursement for business expenses.
- Reimbursement for moving expenses.
- Reimbursement to pay taxes on previous reimbursements.

Gifts are NOT an option.