new house referral payment???

[WRX64]

i just referral a friend to buy a house from my builder.
i received $3000 referral payment.

my question is Do i need to report as income? is it considering capital gain or normal income?

And what is the tax rate on it?


thanks

[93mr2gt]

I dont believe you have to report it at all. Car referrals you dont have to report either.

[JordanLotoski]

Why would you not have to claim it? its "other income"

[Rarasaurus]

Originally posted by JordanLotoski
Why would you not have to claim it? its "other income"

Agreed, just because you didn’t work for it does not exempt you from taxes. Take lottery winnings for example..

[barmanjay]

If they handed you a wad of cash, ........

lol

[HondaKid]

The builder sure as hell is reporting it, certain to be a benefit to his company. It is not a lotto win, so looking at it as such is a wrong road.

[That.Guy.S30]

Originally posted by Rarasaurus


Agreed, just because you didn’t work for it does not exempt you from taxes. Take lottery winnings for example..

you dont pay taxes on lottery winnings. only on the interest earned on the winnings.

[Altezza]

Originally posted by Rarasaurus


Agreed, just because you didn’t work for it does not exempt you from taxes. Take lottery winnings for example..

Lotto winnings are not considered as income for tax purposes.

[bignerd]

Originally posted by Altezza


Lotto winnings are not considered as income for tax purposes.

Agreed, it is only in the States that you are taxed on inheritances, lotto/prize/gambling winnings...