The U.S. Supreme Court has said that a gift is tax-free to the recipient only if it proceeds from a detached and disinterested generosity . . . out of affection, re-spect, [etc., as quoted in your textbook]. That easily means that most intra-family gifts are tax-free, equally easily that most occurring in a business setting are tax-able (as disguised compensation). But are some gifts more gray-area???

Assume that a young person comes to you, a CPA, and explains that, in addition to W-2 income, s/he received almost $50,000 during 2019 for dating certain more mature and more financially secure individuals. But really, I was just arm-candy and good conversation, thats all! s/he says, adding But I liked all of them, otherwise we wouldnt have dated.

Do you believe that you would need to dig a little deeper, ask some due-diligence questions to get additional facts? Or, on the face of this story, would you already be perfectly satisfied that the $50,000 would not have to be included when you prepared this persons 1040? Why?

plz ans asap....