Tax Law (Questions About Taxes)/Gifts from work I pay tax on
I work for an airline. We can earn round trip space available passes if we work enough. If we choose to receive them we have to pay taxes on them. We are then allowed to barter with them or just give them away. We are not allowed to sell them. Company policy is that if anyone who has one of your passes tries to sell it, you, the employee, can be terminated. Is this legal? Are these tickets considered ours to do what we want with them since we payed to get them?
According to IRS “The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not. The gift tax applies to the transfer by gift of any property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift”.
Also according to IRS the rule is that the basis in the property is the same as the basis of the donor.
Although, there is the agreement made between you and your company which is the company’s policy.