Hello! I recently graduated college and as a gift, my grandfather wants to help pay for rent for the next year. He wants to gift me 1k every month for the next year. However, there is a twist.
My grandfather is the owner of our family's business, and he would like to pay me FROM the business, not personally. I am not currently an employee of the company, but I have been before. I currently have another job full-time and have not worked at that business for over 2 years.
If he were to follow through with this plan - 1k a month from the business to me, a non-employee - what are the tax obligations here? Would I have to fill out a W-9 and pay income tax on this "gift" if he chose to pay this way?
I fear it does not fall under typical gift tax rules where there would be no obligation as the gift is under 16k (and split in half by calendar year) and I believe if I were an employee of the company it would be straightforward - income tax obligation for me. But I don't quite know what the intricacies are as it is coming from a company to a non-employee. I have a feeling my above answer is correct and would obviously prefer not to do that, but I want to know what I'm talking about before I talk about it with him.
