Victims of disasters may receive goods and financial help from organizations, such as the Red Cross. IRS Commissioner Rettig confirmed that such payments are not taxable to recipients. Gifts from organizations are specifically excludable from gross income (Code Sec. 102). The same tax-free treatment applies to gifts received from individuals; they are not included in gross income. Thus, for example, goods and other payments received by victims of the Surfside Condominium collapse are not taxable.
Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.