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Record Powerball lottery won by one Nebraskan

Topic closed. 63 replies. Last post 11 years ago by Uff Da!.

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Sparta, NJ
United States
Member #18331
July 9, 2005
1977 Posts
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Posted: February 23, 2006, 10:27 pm - IP Logged

Gift taxes are a pain, but you can get out of them if you "only" give $12,000 to each friend or family member per year.

Hey granny, sorry, you have to keep working in Wal-Mart another 20-years, that $12K limit thing.  Oh well, see you next January. Ya'll be careful now. Bye.

Come one, there are more ways around the gift tax law then there are vowels in the gift tax law.  All laws are written by rich lawyers.  How many politicians grandmothers are starving, or surviving on $12K a year?

Cheers

|||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

I only trust myself - and that's a questionable choice

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    New Member

    United States
    Member #32189
    February 9, 2006
    2 Posts
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    Posted: February 24, 2006, 8:09 am - IP Logged

    Gift taxes are a pain, but you can get out of them if you "only" give $12,000 to each friend or family member per year.

    Hey granny, sorry, you have to keep working in Wal-Mart another 20-years, that $12K limit thing.  Oh well, see you next January. Ya'll be careful now. Bye.

    Come one, there are more ways around the gift tax law then there are vowels in the gift tax law.  All laws are written by rich lawyers.  How many politicians grandmothers are starving, or surviving on $12K a year?

    You're exactly right, my friend.

    There's lots of ways around it. As you said, the law was written by a bunch of rich people. I Agree!

     

    The first $48K per year to each pair of friends/family is totally tax free under all circumstances, no matter how much money you give away every year, and no matter how many "friends" you have. (or $24K if you're single) And you can still give them nice cars without going over the annual limit by leasing the vehicles.

     

    But like the 2nd link above says, you can also give away an extra $2M (or $1M if you are single) per year total divided up among all your moochers over and above that first $48K per pair. That's per year. So if you have ten friends/family, and if you are married, you can dish out a total of $2,480,000.00 per year tax free, or $248K per "friend". Not counting school and medical help. Per year. Tax free. Be sure to let your friends know that there's only about $2.5 mill to go around each year, so they won't be such pests. Thumbs Up

     

    The IRS really sticks it to single people, so if you're single, and your widowed grandma is your only friend in the whole wide world, then you can only give her $1,012,000.00 tax free every year, not counting new dentures and that GED training she always wanted. She can probably scrape by on that.... unless she blows it all on Hoosier Lottery tickets!

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      Sparta, NJ
      United States
      Member #18331
      July 9, 2005
      1977 Posts
      Offline
      Posted: February 24, 2006, 6:38 pm - IP Logged

      Gift taxes are a pain, but you can get out of them if you "only" give $12,000 to each friend or family member per year.

      Hey granny, sorry, you have to keep working in Wal-Mart another 20-years, that $12K limit thing.  Oh well, see you next January. Ya'll be careful now. Bye.

      Come one, there are more ways around the gift tax law then there are vowels in the gift tax law.  All laws are written by rich lawyers.  How many politicians grandmothers are starving, or surviving on $12K a year?

      You're exactly right, my friend.

      There's lots of ways around it. As you said, the law was written by a bunch of rich people. I Agree!

       

      The first $48K per year to each pair of friends/family is totally tax free under all circumstances, no matter how much money you give away every year, and no matter how many "friends" you have. (or $24K if you're single) And you can still give them nice cars without going over the annual limit by leasing the vehicles.

       

      But like the 2nd link above says, you can also give away an extra $2M (or $1M if you are single) per year total divided up among all your moochers over and above that first $48K per pair. That's per year. So if you have ten friends/family, and if you are married, you can dish out a total of $2,480,000.00 per year tax free, or $248K per "friend". Not counting school and medical help. Per year. Tax free. Be sure to let your friends know that there's only about $2.5 mill to go around each year, so they won't be such pests. Thumbs Up

       

      The IRS really sticks it to single people, so if you're single, and your widowed grandma is your only friend in the whole wide world, then you can only give her $1,012,000.00 tax free every year, not counting new dentures and that GED training she always wanted. She can probably scrape by on that.... unless she blows it all on Hoosier Lottery tickets!

      I still think, the Disney process, court approved, is simpler.  Form you LLC, and hire your friends and relatives to perform critical functions.  Monitor the lawyers, review the accountants numbers, oversee the Investment Groups.  Hell, open the front door in the morning and lock it at night.  My grandma would be the caretaker of a condo in Honolulu; supervising the maintenance crew.  Company car, hiring bonus, firing bonus, expense accounts, all the perks you normally pay people.  Once you meet the amount you want to give away, fire them - and let them keep the assets they have depreciated; cars, condo, etc.  AND it is deductible as expenses to the LLC!

      Cheers

      |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

      I only trust myself - and that's a questionable choice

        Uff Da!'s avatar - InCelebration 001.jpg
        Washington State
        United States
        Member #33973
        February 26, 2006
        347 Posts
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        Posted: March 13, 2006, 2:13 pm - IP Logged

        Sorry to resurrect this older thread, but I just happened to read the last few posts of it and wanted to correct what I believe is a rather major error.

        StormThinker said:

        But like the 2nd link above says, you can also give away an extra $2M (or $1M if you are single) per year total divided up among all your moochers over and above that first $48K per pair. That's per year.

         

        The link to which he referred was this:
        http://www.irs.gov/publications/p950/ar02.html

         

        The one million dollar exclusion is not per year, it is in total, presumably in your lifetime and then some, as it gets carried over into the estate tax exclusion, also.  StormThinker apparently missed this part on the same page to which he linked:

        Any unified credit you use against your gift tax in one year reduces the amount of credit that you can use against your gift tax in a later year. The total amount used during life against your gift tax reduces the credit available to use against your estate tax.