Whose income is it?

Are you sure it's even income, not a gift? Then the question becomes, did the original gift go to you, or did your girlfriend receive the gift and then re-gift it to you?

Barry - OP's girlfriend "paid big bucks" for her ticket, but 'snuck' OP in. In theory, she stole FMV, but gifted it to him, no?

It's not anyone's "income". Are you the people who "snuck" into the state reception?

He obviously participated in the sneaking in, so earned at least part of the value.

Seth

Why not?

It would seem to meet the legal definition.

Seth

OK, I'll play.

Seems to me that the one who stole the evening's offerings (that would be you) is the one who had the income. Since your accomplice's benefits were of no monetary value (the thrill of the caper, the pleasure of your company, etc.) I don't see any income to her.

Phil Marti VITA/TCE Vlolunteer

Let's put the right spin on this.

You really really didn't want to come, and told her you usually charge big bucks to come to these, but since she begged and pleaded with you, you agreed to accompany her without charging her.

The food and music actually made you feel ill, but you put up with it since you agreed to attend.

Analysis: No allowed deduction for the value of your time and services. The thought of deemed income doesn't even enter the picture.

She managed to sneak you in - how? Somebody running the show must have given her a wink and a nod, meaning it was a gift to her, which she re-gifted. No income.

What you should be worrying about is your girlfriend's propensity to pay "big bucks for her ticket" and the need to attend "very very very nice dinners". She will be expecting you to be paying for these in the future, even when she is not able to scam a free ticket. Be very, very wary. Be particularly wary if she assures you she has received an invitation to a state dinner.

"...if she assures you she has received an invitation to a state dinner." ...and that she used to be a Redskins cheerleader!!

Change the story slightly, but same scenario:

Your girlfriend takes you shopping one afternoon at the nearby mall. In the high-end department store, she buys a purse for herself, and unbeknownst to you, places a very very nice men's tie she shoplifted from the same store into your shopping bag, which you don't learn about until you get home.

Seems to me if you receive and knowingly keep stolen goods, it's your income even though you didn't directly steal them. She was merely an agent for you in the theft, and didn't steal the tie for her own benefit (she was not enriched by it). As an aside, the fact that she also bought a purse is irrelevant.

-Mark Bole

Someone takes me out to dinner and pays for it. I don't report it as income on my taxes.

If done socially, it's a gift (though there's some weirdness: if I invite you for my enjoyment, is it a gift to you or just me doing something for my own benefit?)

If business, it could be income. If the reason they took you out to dinner and paid was that you provided them with business advice, I'd say it is income.

Seth

Instead of a fancy dinner, she gets you to agree to go and be in the audience of a television show. The production company decides to give each audience member a bicycle (FMV=$100, and various stores sell a lot of them at prices from $100 to $150). You, being a serious bicyclist, decide that the one they give you is garbage compared to any of the three you own and ride, and it isn't even worth the effort of bringing home and putting on Craiglist because you got there by bicycle.

I'd bet the IRS says that it's still $100 income.

Seth

What if she stole it? She told the doorguard that the invite she had was for two people, and they both walked past. He might not even have known about that until later.

Seth

Not if you don't take it.

At least when I was on a game show, we had the option of declining to take some of the merchandise prizes. I would imagine that any that we declined wouldn't appear on the 1099 form from the show.

Not income.

You do not pay taxes on stolen property.

Next year perhaps: Line 46: Total value of non-reported stolen property____________________

snipped

Why not?

You pay taxes on windfalls? If you find an original Monet behind that Grateful Dead Poster you bought at the yard sale last weekend, you're supposed to include that in income.

And you are supposed to include in income proceeds from illegal activities - that's what put Capone in jail.

So what makes you think you don't pay taxes on stolen property?

Inquiring minds want to know, Gene E. Utterback, EA, RFC, ABA

"Thomas" wrote

Actually, income from any and all illegal activity is taxable.

oh yes you do! Unless you return it in the same year you stole it.