Tax question

[GatorFanCF]

Great human interest story about homeless man returning a ring given to him in error
http://www.huffingtonpost.com/2013/0...n_2743310.html

Tax question: since none of the individual donors gave anywhere near the gift tax limit ($13,000 I think) but the total is approaching six figures will this man have to pay tax on this money; and, if so, what will be the ultimate burden (income Fed, State, local?, any self-employment tax?). I hope he does not have to pay any taxes on these donations.

Side bar: since he has acquired in a month more than most folks do in a year is it incumbent on the government to make sure he pays his "fair share?"

[VAg8r1]

Not a tax attorney or an accountant, but as far as I can determine the gifts would not be considered taxable income insofar as the homeless man is concerned.

Tax Rules for Gifts

By Kaye A. Thomas
Current as of June 5, 2012

The main rules for gifts between individuals are fairly simple. These gifts don’t produce deductions for the donor or income for the recipient. And most of the time there’s no gift tax, either. But if you give more than the annual exclusion amount ($13,000 as of 2012) to one person other than your spouse in a single year, you’ll have some planning concerns — and a reporting obligation. Gifts you receive aren’t considered income. It doesn’t matter how large they are. You don’t report them on your income tax return in any way.

link

[Swampmaster]

Gifts---not income to the donee. Donors get a $14,000 per year annual gift tax exclusion per donee and $5 million lifetime gift/estate tax exclusion above that.

[GatorFanCF]

Thank you both for the follow up - I sincerely hope he gets to keep everything given to him.
Don't know the guy's circumstances leading up to his homelessness; but, I hope this is a great pivot point in his life and continued positive things flow to him. Character counts.