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PowerTogether promotion & taxes

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Hi all.

 

I participated in the PowerTogether.com Vista & Office promotion and ended up getting both for free. I noticed that part of the fine print said that due to the total retail cost of all this free stuff, I needed to submit a W-9 to Microsoft, then deal with the tax implications of it.

 

My understanding was that this counted as a gift from Microsoft, and because it was above some dollar limit it was taxable as income.

 

But when I search for taxes on gifts (e.g. http://www.fairmark.com/begin/gifts.htm) doesn't seem to agree with this - that is, it states that gifts are not included in income, ever.

 

What's the true story?

 

 

More...

 

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