A recently widowed woman in Indiana gave a $10,000 tip to Jessica Osborne, a 20-year-old Pizza Hut waitress. Osborne will use the generous tip to help pay for college.
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That's good for everyone--the waitress, the donor, and tax nerds like me who can debate whether, come April, the waitress will classify this as taxable income from a tip or as a non-taxable gift.
@miborovsky: Ah, it begins. I would tend to agree with you. Gift v. income is supposed to turn on the donor's intent, & I would think the IRS would have difficulty arguing the donor intended this to be anything but a gratuitous transfer. However, ordinary tips are definitely income, and taxpayers have lost challenges in the past attempting to argue a tip is a gift. Given the amount, nature, etc. I still think this is a gift. It would be interesting to know if the Service is going to challenge this one. I'm sure there's tax court or dist. court precedent for extreme "tips," but I'm too lazy to check.
In other news, a recent widow says 'fuck the homeless.'
Kudos to those who enjoy sharing the wealth, especially when they refused to be named(maybe its because they don't want calls for donations but I'd rather think its they don't feel the need for recognition for doing a good thing). More people need to take the lead.