Generally, per capita distributions must be included in the recipient's gross income. If goods or services other than cash are received, the fair market value of the item would be included in the recipient's gross income.
NOTE: This would include distributions of net revenues from a Class II or Class III gaming activity.
Generally, per capita payments made to members of Indian tribes from funds held in trust by the Secretary of the Interior will not be subject to tax. This doesn’t apply where a tribal trust account is used to mischaracterize what would otherwise be taxable income as nontaxable per capita distributions.