Welcome Guest
Log In | Register )
You last visited December 9, 2016, 2:19 pm
All times shown are
Eastern Time (GMT-5:00)

Gift Taxes

Topic closed. 31 replies. Last post 11 years ago by delS.

Page 1 of 3
PrintE-mailLink
Avatar
md
United States
Member #14047
April 20, 2005
579 Posts
Offline
Posted: November 15, 2005, 9:46 am - IP Logged

Good morning-

I'm not an expert tax person, and God knows the tax attorney would be my first hire if I won big, but here goes

This is for all the experts that we have here at LP, and I am not being flip about my statement.  Say you won the $310 MM Jackpot, and after all the initial taxes were taken out, you walked away with $114,000,000 cash option.  You had 25 family and Friends you planned on giving anywhere from $20,000 to $1,000,000.  The gift tax law says you can give away up to $11,000 before any the gift tax kicks in. 

My question is, roughly speaking what amount of taxes would I be looking at for giving away 25 gifts above the $11,000 mark?

 

    Avatar
    Sparta, NJ
    United States
    Member #18331
    July 9, 2005
    1977 Posts
    Offline
    Posted: November 15, 2005, 9:58 am - IP Logged

    Assuming your google option has been disabled, research is available at this link.

    http://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=GGLD,GGLD:2005-05,GGLD:en&q=gift+tax

    Research is good, it provides answers to questions.

    Cheers

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

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

      Avatar
      md
      United States
      Member #14047
      April 20, 2005
      579 Posts
      Offline
      Posted: November 15, 2005, 10:01 am - IP Logged

      Chewie-

      My Google was and is working fine.  I already received answers from there as well as yahoo and msn.  However, they are not specific enough to my question, and my posting had to do more with real practical experience, hoping one of the LP members who have won, could shed more practical light.  Thanks though.

        Avatar
        md
        United States
        Member #14047
        April 20, 2005
        579 Posts
        Offline
        Posted: November 15, 2005, 10:03 am - IP Logged

        Hey Todd, you probably have seen and heard the most about the impact of Gift Taxes here, what can you shed on the subject?  Any threads from previous winners around?

          Avatar
          Sparta, NJ
          United States
          Member #18331
          July 9, 2005
          1977 Posts
          Offline
          Posted: November 15, 2005, 10:18 am - IP Logged

          Good morning-

          I'm not an expert tax person, and God knows the tax attorney would be my first hire if I won big, but here goes

          This is for all the experts that we have here at LP, and I am not being flip about my statement.  Say you won the $310 MM Jackpot, and after all the initial taxes were taken out, you walked away with $114,000,000 cash option.  You had 25 family and Friends you planned on giving anywhere from $20,000 to $1,000,000.  The gift tax law says you can give away up to $11,000 before any the gift tax kicks in. 

          My question is, roughly speaking what amount of taxes would I be looking at for giving away 25 gifts above the $11,000 mark?

           

          I don't see what is unique to your question that is not answered in one of the links.  The gift tax is based on amount, per individual,  up to a specified limit.  Whether you chose the number five, ten, twenty, thirty, or one hundred; does not make your question unique.

          A short research would have revealed:

          http://www.smbiz.com/sbrl017.html

          Unified Gift and Estate Tax Rates

           If the amount is:               Tax is:      Over     But not over         Tax       +%    Excess Over $        0    $   10,000               0    18    $        0     10,000        20,000           1,800    20        10,000     20,000        40,000           3,800    22        20,000     40,000        60,000           8,200    24        40,000     60,000        80,000          13,000    26        60,000     80,000       100,000          18,200    28        80,000    100,000       150,000          23,800    30       100,000      150,000       250,000          38,800    32       150,000    250,000       500,000          70,800    34       250,000    500,000       750,000         155,800    37       500,000    750,000     1,000,000         248,300    39       750,000  1,000,000     1,250,000         345,800    41     1,000,000  1,250,000     1,500,000         448,300    43     1,250,000  1,500,000     2,000,000         555,800    45     1,500,000  2,000,000     2,500,000         780,800    49     2,000,000  2,500,000     3,000,000       1,025,800    53     2,500,000  3,000,000     .........       1,290,800    55     3,000,000 
          Gotta love Google.

          Cheers

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

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

            Avatar
            Sparta, NJ
            United States
            Member #18331
            July 9, 2005
            1977 Posts
            Offline
            Posted: November 15, 2005, 10:19 am - IP Logged

            Good old filter, eliminated the numbers, but the link remained.

            Cheers

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

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

              Avatar
              Alabama
              United States
              Member #17830
              June 27, 2005
              309 Posts
              Offline
              Posted: November 15, 2005, 11:00 am - IP Logged

              Good morning-

              I'm not an expert tax person, and God knows the tax attorney would be my first hire if I won big, but here goes

              This is for all the experts that we have here at LP, and I am not being flip about my statement.  Say you won the $310 MM Jackpot, and after all the initial taxes were taken out, you walked away with $114,000,000 cash option.  You had 25 family and Friends you planned on giving anywhere from $20,000 to $1,000,000.  The gift tax law says you can give away up to $11,000 before any the gift tax kicks in. 

              My question is, roughly speaking what amount of taxes would I be looking at for giving away 25 gifts above the $11,000 mark?

               


              Your best bet is to direct your questions to the IRS. I have eamiled or called them in the past and they have been very helpful. They could probably give you a good estimate of what the taxes would be.

              Check their web site for contact information: www.irs.gov.

              You may want to contact your state department of revenue as well.

               

              Check out the benefits of a Lottery Post Premium Membership!

              Want to know more?  >> Click Here <<

              Read what Platinum Members have to say:  << Click Here >> 

                Avatar
                Portland
                United States
                Member #7262
                September 27, 2004
                111 Posts
                Offline
                Posted: November 15, 2005, 11:25 am - IP Logged

                Hello delS:


                All I know about gift taxes is: after you give someone your money (bigger than > $11,000) then you have to be taxed about 41-49% on the given amount!!!

                I was also just learned about this thing, and I'm pretty shocked!

                So ...ex: if you give 50% of your winning to someone (greater than $11,000) that meant you will be taken about almost 75% (including the gift + gift tax) of your winning! So be carefull....

                P.S.: Please make sure the tax questions with the goverment before making given big action!

                  pigsNtrees's avatar - pigsNtrees
                  Mallorn trees of Lothlorien
                  United States
                  Member #26084
                  November 14, 2005
                  199 Posts
                  Offline
                  Posted: November 15, 2005, 11:59 am - IP Logged

                  First off please excuse my ignorance but, wouldn't it be simpler to open an account then give your loved one a debit card?

                  Quando Porca Volare!

                  drunk hobbit

                    Avatar
                    md
                    United States
                    Member #14047
                    April 20, 2005
                    579 Posts
                    Offline
                    Posted: November 15, 2005, 12:09 pm - IP Logged

                    pigsNtrees-

                    This gift tax discussion has nothing to do with debit cards or account.  When you start distributing amounts of money - gifts, ranging from $20,000 to $1,000,000 your estate is impacted and the tax man cometh. 

                      whitmansm2's avatar - Lottery-029.jpg
                      Right here...can't you see me?
                      United States
                      Member #21521
                      September 10, 2005
                      131 Posts
                      Offline
                      Posted: November 15, 2005, 12:17 pm - IP Logged

                      That's a good question, though. Why couldn't someone just open an account (checking) with their name and say, for example, their mothers name. Then give mummsie a debt card and let her spend what she wants?!

                      No No

                      Don't cry over spilled milk.  Go milk another cow!!

                      Stephanie

                        pigsNtrees's avatar - pigsNtrees
                        Mallorn trees of Lothlorien
                        United States
                        Member #26084
                        November 14, 2005
                        199 Posts
                        Offline
                        Posted: November 15, 2005, 12:36 pm - IP Logged

                        If your mothers name is on it she would probably pay taxes. This would be an account of many, with your name on it. She could withdraw the cash she needs with the debit card, also on the house you bought for her (and you'd need to keep it in your name) just use automatic withdrawal (from this account) for all the utilities.

                        I'm all for paying my share of taxes. That said, this money has already been taxed before you even get it, then hit with a whopper of tax if you give it away. That doesn't seem fair to me.

                        Quando Porca Volare!

                        drunk hobbit

                          Avatar
                          md
                          United States
                          Member #14047
                          April 20, 2005
                          579 Posts
                          Offline
                          Posted: November 15, 2005, 12:43 pm - IP Logged

                          I hear you and understand what you and Whitsamin2 are saying, however, I just believe there are better tax strategies out there that won't keep the bullseye of the tax man on my back.  I don't think a lot about taxes are fair either.  I'm with you on that.  I just believe in the offices of the IRS, they are keeping files on big jack pot winners, and thgey probably scrutinize very (no make that extremely) close the taxes and spending of winners. 

                            pigsNtrees's avatar - pigsNtrees
                            Mallorn trees of Lothlorien
                            United States
                            Member #26084
                            November 14, 2005
                            199 Posts
                            Offline
                            Posted: November 15, 2005, 12:50 pm - IP Logged

                            I have noticed that the rich and we are taking stinking here, set up charities then name their family members to the board of directors. Maybe this is how they share without being taxed to death?

                            Quando Porca Volare!

                            drunk hobbit

                              Raven62's avatar - binary
                              New Jersey
                              United States
                              Member #17843
                              June 28, 2005
                              49808 Posts
                              Offline
                              Posted: November 15, 2005, 1:14 pm - IP Logged

                              Good morning-

                              I'm not an expert tax person, and God knows the tax attorney would be my first hire if I won big, but here goes

                              This is for all the experts that we have here at LP, and I am not being flip about my statement.  Say you won the $310 MM Jackpot, and after all the initial taxes were taken out, you walked away with $114,000,000 cash option.  You had 25 family and Friends you planned on giving anywhere from $20,000 to $1,000,000.  The gift tax law says you can give away up to $11,000 before any the gift tax kicks in. 

                              My question is, roughly speaking what amount of taxes would I be looking at for giving away 25 gifts above the $11,000 mark?

                               

                              Consult a Professional that Specializes in such matters.