Are gifts taxed?

AuthorsEngine (AE) management can't give tax advice.

You are responsible for paying taxes applicable in your country.

AE does not provide tax forms.

Thoughts for Your Tax Professional

A contribution to an author can be seen as a personal gift because no contract, implicit or explicit, exists between author and giver, and no work is produced/exchanged for the gift.

A contribution to an author can also be seen as income.

Regarding the US, per IRS guidance, a contribution to an author appears to be a personal gift because the contributor does not receive a good or service in return for the contribution.

Further, laws around the world, like the First Sale Doctrine, state that authors don't get a second sale, a cut, when a paper book is borrowed or resold. Those laws may imply that a contribution/payment to an author for a book that has already had its first sale is a gift.

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