BST: Question about Gifting for referral of sale?

[R C Smith Jr]

Henry Quigley wrote:

> the IRS would say that you paid someone for the referral. That is compensation
> for consideration. It doesn't matter what you call it and whether there is a
> contract or not.
> In addition they might consider it a fraudulent act.

Scott,

You got the thinking cap on, buddy. And Henry (above) has the shoe on the
wrong foot. 

Scott, you can call the payment anything you want and, as long as you are
not claiming a deduction of the "gift" on your return, you are not doing
anything wrong. The recipient has the burden of deciding whether tax is due
for him...and that ultimately has nothing to do with you.

IMHPO, of course...

Scott, enjoyed the lunch in Annapolis...have fun on the rest of the cruise.

Bob
____________________
R C Smith Jr
M/V MARY KATHRYN
1977 Hatteras 58 LRC
South River
Annapolis, Md