Rettig Tells Rubio Surfside Charitable Gifts Will Be Excluded

September 15, 2021

The Honorable Marco Rubio
United States Senate
Washington, DC 20510

Dear Senator Rubio:

Thank you for your letter dated September 1, 2021. You asked about the tax treatment of gifts victims are receiving because of the June 24, 2021 Champlain Towers South building collapse in Surfside, Florida. Like you, I encourage support to this tragedy's victims and the many generous Americans offering them relief.

Generally, individuals must pay federal tax on all income from whatever source derived; however, gifted property is not taxable. A gift is generally defined as a transfer made from detached and disinterested generosity.

The IRS considers as gifts payments individuals receive from a charitable organization (or directly from members of the public) in response to a disaster or emergency hardship. Section 102 of the Internal Revenue Code excludes these payments from the gross income of the recipients.

Your constituents can find more information in the enclosed IRS Publication 3833, Disaster Relief. It is also available online at IRS.gov.

I hope this information is helpful. I am sending a similar response to Senator Scott who also signed the September 1 letter. If you have questions, please contact me, or a member of your staff may contact Amy Klonsky, Chief, National Congressional Affairs Branch, at 202-317-6985.

Sincerely,

Charles P. Rettig

Enclosure