INCOME TAX IMPLICATIONS OF PRIZES & AWARDS
HOW TO VALUE THEM FOR INCOME TAX PURPOSES?
In a previous blog post, we wrote about the GST/HST implications of prizes and awards for direct sellers. In this post, we turn to the income tax consequences, a topic that often causes confusion for Independent Sales Contractors (“ISCs”). Understanding how these awards are treated for tax purposes is important as missteps can lead to unintended reporting errors or even overstating tax liabilities.
Tagged in:
Direct Selling Industry
Fair Market Value
Income Tax Implications
Independent Sales Contractors
Prizes and Awards
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