| | Gift in lieu of payment from client. Tax implications?
I do web design as a hobby. I got asked to help out with a friend's company's website and it turned into me managing it fully. I'm definitely an independent contractor, although there's no contract and I'm not paid*.
*Not on a paycheck, at least.
They said they would gift me some furniture for my new apartment as a "thank-you gift". This is the only payment I've gotten. I am totally cool with this. What I want to know is what the tax implications of this gift. It was just over $500. Pretty sure they're not going to send me a 1099. Is this a non-taxable gift, or a taxable gift that I should put on my 1040, or non-cash income that I should put on my 1040? Or is it something else?
Thanks in advance!
Last edited by haydenj96 : 11-29-2015 at 02:27 AM.