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So what can you do with $7,500,000?

Topic closed. 19 replies. Last post 8 years ago by larry3100.

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DC81's avatar - batman39
MI
United States
Member #54830
August 31, 2007
985 Posts
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Posted: March 13, 2009, 6:49 pm - IP Logged

The first $1,000,000 you give in life is exempt.

Hmmm? I thought it you were limited to $13,000 per person or whatever the exemption is for that year but the $1,000,000 was included in that accumulated over your life time and factored into it and once you went over that $1,000,000 you would no longer have any sort of exemption. Well, that works better then and yay! I've learned how this is properly done and found myself a little bit more reading. Thumbs Up I guess never mind about ambelamba's plan then though I dunno if I'd want to deal with the problems and headaches that come with being a landlord..

You can't predict random.

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    Entertaiment Capital
    United States
    Member #37800
    April 19, 2006
    302 Posts
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    Posted: March 13, 2009, 8:54 pm - IP Logged

    The first $1,000,000 you give in life is exempt.

    Hmmm? I thought it you were limited to $13,000 per person or whatever the exemption is for that year but the $1,000,000 was included in that accumulated over your life time and factored into it and once you went over that $1,000,000 you would no longer have any sort of exemption. Well, that works better then and yay! I've learned how this is properly done and found myself a little bit more reading. Thumbs Up I guess never mind about ambelamba's plan then though I dunno if I'd want to deal with the problems and headaches that come with being a landlord..

     But as a Korean I see real estata as a very viable investment.

     I have no wish to touch the initial amount. But I don't want to put all the money is stock and bonds either. And I have absolutely no wish to put the money in plain savings or checking account.

     Good thing is that I can add my parents and sisters as co-claimants, or I can set up a trust to claim the prize.

      grengrad's avatar - nw rogue.jpg
      Raleigh
      United States
      Member #49057
      January 17, 2007
      172 Posts
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      Posted: March 14, 2009, 6:10 am - IP Logged

      The first $1,000,000 you give in life is exempt.

      Hmmm? I thought it you were limited to $13,000 per person or whatever the exemption is for that year but the $1,000,000 was included in that accumulated over your life time and factored into it and once you went over that $1,000,000 you would no longer have any sort of exemption. Well, that works better then and yay! I've learned how this is properly done and found myself a little bit more reading. Thumbs Up I guess never mind about ambelamba's plan then though I dunno if I'd want to deal with the problems and headaches that come with being a landlord..

      Hey DC81,

      A little more info.

      $13,000 per person per year is exempt.

      In addition to the $13,000 per year, the first $1,000,000 of non-exempt gifts is also exempt.

      For example, if you give say $100,000 in a year to someone, that only eats $87,000 of your $1,000,000 up.

      If you are married, you can really milk the system, because you can each give $13,000 to someone, and it is exempt. If you are married and giving money to a brother who is also married, you can give $13,000 to him and $13,000 to his wife, then your wife can give $13,000 to him and $13,000 to his wife, for a total of $52,000 that is gift tax free. Additionally, if you are married, your wife/husband also has their own $1,000,000 exemption.

      Furthermore, gifts that cover medical expenses or tuition do not count towards the $13,000 or the $1,000,000.

      Finally, the gift tax rate will be a lower percentage in 2010, before going back up in 2011, so if you win this year, you may want to wait to give any money beyond the million away until next year.

        DC81's avatar - batman39
        MI
        United States
        Member #54830
        August 31, 2007
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        Posted: March 14, 2009, 8:24 am - IP Logged

        Yup, read all about that. The only thing I really got mixed up was how the $13,000/$1,000,000 exemption worked. But now that I have that straightened out it's gives me a much better idea of how much I could actually give away if I wanted to. Certainly makes it much wider....

        Oh if ONLY I could win this year..... Jester Save a lot on the taxes we're going to be hit with after next year not mention whatever our wonderful politicians have in store for us before then.

        You can't predict random.

          larry3100's avatar - larry icon2.jpg
          Redwood City,California
          United States
          Member #70503
          February 3, 2009
          200 Posts
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          Posted: March 15, 2009, 5:31 pm - IP Logged

          I remember sometime ago on tv,Suze Orman,the financial guru,was telling people to get a 401(K) plan.Now I hear,a lot of people are losing their shirts with the 401(K)s. My advice to you.Think for yourself before you invest your money.Now,if I ever win a jackpot over $7,500,000 after taxes,I would put the money in municipal bonds,bank CD's and land.That's it. I would never want to be a landlord,it's just wast of time. Thumbs Up