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    MomWontGiveUp's Avatar
    MomWontGiveUp Posts: 179, Reputation: 9
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    #1

    Feb 6, 2011, 07:37 PM
    Imputing Cash (Gift) Income
    [COLOR PURPLE]In relation to computing child support, are cash gifts imputed as Gross or Net income?

    Example: If a parent is receiving $1,000/mo. Cash, is it imputed as $12,000/yr. or more, since a working person would have needed to earn more than $12,000 in order to net $1,000/mo.

    Also - is it possible to impute the value of car expenses? Car is owned and insured by someone other than the parent (in addition to the cash received.)

    Thanks!
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #2

    Feb 6, 2011, 07:42 PM

    Where is the cash coming from? It would be net unles taxable. If taxable then it would be added to the gross. The car isn't added. What is the source of the car?
    MomWontGiveUp's Avatar
    MomWontGiveUp Posts: 179, Reputation: 9
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    #3

    Feb 6, 2011, 07:48 PM
    Comment on califdadof3's post
    Cash is coming from parents in the form of paying (and signing for) the monthly lease. The car title was transferred during bankruptcy proceedings in the form of a loan. It's likely car insurance is paid for by parents as well so add another $200.
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #4

    Feb 6, 2011, 08:11 PM

    Here is the IRS site that covers gifts and how the taxes apply to it.

    Frequently Asked Questions on Gift Taxes


    A loan is not an asset. The only time it becomes one is when its not being paid back.
    MomWontGiveUp's Avatar
    MomWontGiveUp Posts: 179, Reputation: 9
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    #5

    Feb 6, 2011, 08:41 PM
    Comment on califdadof3's post
    The loan will never be paid back because it was discharged in Chapter 7 bankruptcy. To my knowledge, father still holds title. Ex has no assets and is not even the Lessee (grandpa is) so he's off the grid for everything.
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