Would you pay the gift tax?

Reply #18

OnePunchMan — Sat, 06 Apr 2019 19:32:18 GMT

I would give $15,000 immediately to the people that I want to gift. And then I would set up trust funds that will directly deposit money monthly or one-time annually to the people I want to gift for tax purposes. The person receiving the money, receiving a large sum might not be the best thing for them either. So, a monthly payment over the course of 20 years so they can easily pay off their bills might be the way to go.

Reply #17

Stack47 — Sun, 24 Mar 2019 04:00:15 GMT

I wasn't taking about tax deductions when I questioned what you said Would you just pay it and be happy you could? Reduce the amount of gifts to everyone so you fall under the exclusion amounts? Cut some people from your list?

What do tax deductions have to do with after winning over $1 billion cutting people from your lists?

I m pretty sure karma doesn t care if I give my nephew $800,000 or a $1,000,000.

If you haven't won a $1 billion jackpot or something close you obviously believ... [ More ]

Reply #16

LottoLucy — Sat, 23 Mar 2019 04:20:34 GMT

You don t seem to understand how the charitable deduction works. You can deduct up to 60% of your adjusted gross income for charitable donations. So that reduces your tax bill. It doesn t have anything to do with the other things you mentioned.

I m pretty sure karma doesn t care if I give my nephew $800,000 or a $1,000,000.

Reply #15

LottoLucy — Sat, 23 Mar 2019 04:07:04 GMT

Thanks for the reply. You also have a life time gift/estate tax exclusion that is $11.4 million per person or $22.8 million per couple so that gift tax rate won t kick in until you use that up, too. That exclusion expires in 2025 and goes back to something like $5.8 million so I would want to give away as much as I could. I don t plan on checking out until much later than 2025.

I was more talking about making big gifts like $1 million to 26 people. So I would use up this year s annual exclu... [ More ]

Reply #14

Raven62 — Fri, 22 Mar 2019 21:43:48 GMT

Gift Tax rates range from 18% to 40%. You do not have to pay tax on gifts that are below the annual exclusion limit, which generally changes every year. For tax years 2018 and 2019, the annual exclusion is $15,000 per recipient.

If you're married, you and your spouse can each make an annual tax-free gift. In other words, you and your spouse together can give every recipient up to $30,000 per year. If you give a gift worth more than the annual exclusion amount, you may need to pay any tax o... [ More ]

Reply #13

Stack47 — Fri, 22 Mar 2019 20:21:35 GMT

You have done your initial charitable giving and hit all of those things on your lottery to-do list. You still have enough money set aside to give gifts to everyone on your gift list

Apparently you're asking for opinions and mine is simple; I'd take care of everyone on my gift list BEFORE handing out money to strangers representing charities. I know for a fact 24% in Federal tax is taken off the top and so is any state taxes, court judgements, back child support, etc. so don't expect to get... [ More ]

Reply #12

music* — Fri, 22 Mar 2019 16:58:22 GMT

As we see at the Southern Border very few are leaving America. Immigrants want to live in the best Country on Earth. There are still places in the lower 48 that need to be developed.

Reply #11

Rexer90 — Fri, 22 Mar 2019 05:04:36 GMT

The citizenship requirements tend to go out the window when you have $millions. The usual deal is have a marketable skill that they need.. OR be obscenely rich.

Reply #10

Elizabeth03 — Thu, 21 Mar 2019 15:23:59 GMT

i know how you feel, about budgeting, i do it, it is uncomfortable though. Paying gift tax, i don't like the idea

Reply #9

mikeintexas — Thu, 21 Mar 2019 15:21:25 GMT

That would require you to first move out of your mom's basement. Are you sure you are ready to take that big of a leap

Reply #8

CDanaT — Thu, 21 Mar 2019 13:03:16 GMT

Bon voyage...........Don't let the door hit ya where the good lord split ya

Reply #7

rcbbuckeye — Thu, 21 Mar 2019 01:30:28 GMT

See ya.

You don't have to wait.

And don't let the door hit you on the way out.

Reply #6

Artist77 — Wed, 20 Mar 2019 23:51:19 GMT

Bon voyage. Of course the citizenship requirements for most developed countries are far more stringent than the US. Many require you to have a job there, bring job skills, and afford to pay into their system of health care. So those countries will not provide you a free ride.

Reply #5

Kingofearth — Wed, 20 Mar 2019 23:40:52 GMT

I'm getting out of this third world hell hole as soon as I can so it would depend on the tax laws of the first country that will accept my refugee request.

Reply #4

LottoLucy — Wed, 20 Mar 2019 20:48:57 GMT

The annual exclusion and lifetime exclusion only applies to gifts to individuals. This year your yearly exclusion is $15,000 per individual and your lifetime exclusion is $11.4 million total. The two are separate meaning you can apply both. Generous until you decide you want to give away $1 million to 26 people.

With charities it is more a matter of what you can deduct if a deduction is important to you. You can only write off up to 60% of your adjusted gross income (in general) for cash don... [ More ]

Reply #3

Artist77 — Wed, 20 Mar 2019 20:24:48 GMT

He seems to be the one misunderstanding a lot recently.

I would try to maximize gifts this year vs paying taxes. Not sure if you can gift charities with the $15000 for individuals but I could find a ton of smaller ones to help.

Reply #2

LottoLucy — Wed, 20 Mar 2019 19:51:26 GMT

See, that was a perfectly nice answer until right there at the end. You didn t need to go there.

Anyway, who knows what the future will bring? The current lifetime exclusion resets in 2025 to pre-Trump tax cut numbers so it is likely my heirs would face a hefty tax bill anyway. This way I could have given away all that I can, either tax free, or almost tax free. But yours is certainly a valid strategy if you want to dole out money every year and gamble Congress is able to make the current exc... [ More ]

Reply #1

music* — Wed, 20 Mar 2019 19:34:32 GMT

I would wait until all the gifts have been given before any charitable giving.

I would give some this year and the rest next year.

With the life-time exclusion used your heirs would not get any benefit from a larger tax bill after you die.

Continue to use the $15,000.00 per person per year gift tax exclusion.

I would think that a CPA could make this plan so you would understand it.

Would you pay the gift tax?

LottoLucy — Wed, 20 Mar 2019 18:48:53 GMT

How would you feel about paying gift tax? Let s say that you won a huge jackpot. You have done your initial charitable giving and hit all of those things on your lottery to-do list. You still have enough money set aside to give gifts to everyone on your gift list and still never touch the principle on your new bank balance. You really wanted to give them all the money outright this year.

Your vastly knowledgeable attorney and financial guru crunch all the numbers, use your exclusions, a... [ More ]