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Answer2:
Church ($1500): It is clearly a charitable gift given to Mike in time of his need in order to provide
relief and rehabilitation. As such it can be excluded from the income.
Employer ($1000): However, in case of an employer, the text clearly states that anything coming
from the employer to employee cannot be excluded as gift (102 c). If we assume that Federal
Emergency Management Agency declares it as a federally qualified disaster situation, however,
the entire amount from the employer (if it is intended to be disaster relief payment) can be
promptly excluded. The IRS must declare that a disaster is a qualified disaster for payments to
meet these criteria.