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What are your thoughts on Gift Tax?

Topic closed. 20 replies. Last post 6 years ago by cope.

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CA
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December 26, 2009
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Posted: August 17, 2010, 10:24 pm - IP Logged

For many people out there, winning the lottery means they can help out friends and family members with financial problems. But Government requires the donor to file Gift Tax if the amount is over $12,000 (somewhere around there). Besides it being another way for the Government to take money away from generous people, what is the point of a Gift Tax?? How does Gift Tax benefit the people that the Government supposedly serve?

Maybe that is why wealthy people don't give hand outs.

    sully16's avatar - sharan
    Ringleader
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    Posted: August 18, 2010, 12:17 am - IP Logged

    we should be able to do what we want with our money without government interference.

    Did you exchange a walk on part in the war ?

    For a lead role in a cage?

     

                                                From Pink Floyd's " Wish you were here"

      savagegoose's avatar - ProfilePho
      adelaide sa
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      Posted: August 18, 2010, 1:42 am - IP Logged

      gift taxes will make sure i only hand over $12k  when family comes a beggin

      2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

      keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

        johngreek's avatar - Lottery-023.jpg
        Patras,Achaia,Greece
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        Posted: August 18, 2010, 2:40 am - IP Logged

        you can give them 100k tax free if they hide they money under the matress

          OwlCreekBridge's avatar - Lottery-031.jpg
          lottoville
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          Posted: August 18, 2010, 4:43 am - IP Logged

          For many people out there, winning the lottery means they can help out friends and family members with financial problems. But Government requires the donor to file Gift Tax if the amount is over $12,000 (somewhere around there). Besides it being another way for the Government to take money away from generous people, what is the point of a Gift Tax?? How does Gift Tax benefit the people that the Government supposedly serve?

          Maybe that is why wealthy people don't give hand outs.

          the government is not here to serve. we are tax cattle and the government is the rancher. like the rancher lets cattle graze his land and offers cattle protection to fatten them up to benefit the rancher. We are given rights and we're offered protection to make us higher earning tax cattle to benefit the government.

          One reason the government issued gift tax is to keep rich people from using their children, friends and relatives as tax loopholes. If I can legally avoid a higher tax bracket by putting 50 grand in my 10 year old son's name and another 50 grand in my 8 year old daughters name, why shouldn't I do it?

            savagegoose's avatar - ProfilePho
            adelaide sa
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            Posted: August 18, 2010, 5:12 am - IP Logged

            if you are rich enough , im sure 100k going missing would be enough for IRS to claim a tax dodge and tax you on assumed earnings anyhow.

            2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

            keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

              Pinkpansies's avatar - Lottery-050.jpg

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              Posted: August 18, 2010, 5:18 pm - IP Logged

              If you are married then you can double the amount that you give since there are two of you.  One reason the government has the rule is because they don't want people to give their fortunes away and not have to pay taxes on it, after all the government has to have their fair share, right?

              I don't think it is fair and I think that sometimes we get taxed too much and the money gets wasted, but we still do live in a pretty great country.  The best thing to do if you win the lottery is to hire a good accountant and attorney because there are ways to legally hide or shelter the money and minimize your taxes by a fair amount.

                joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

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                Posted: August 18, 2010, 6:47 pm - IP Logged

                all tax's are wrong

                the fact anyone thinks its okay to take my money and give it someone else, is nonething but Theft and the belief theft is Okay

                i hate with a passion  any person on earth who's for any Tax

                , however small or large or who it effects

                 

                if people want a big govt, they can work and earn millions and "donate" their hard earned money them selfs

                govt should only be funded by willing charity setup,

                 

                if we all control how much money they get, they Now work For the People,

                yet voters have

                given them the power to steal all money they want, pack however much they want

                ofc they run out of control

                 

                majority of voters have put people who Want to Steal others Money to give them a "share" of the loot or acts of robbery on the rich

                 

                ever dem should be called for what they are, thieves all OF THEM

                 

                current  group of retards in office have their heads up their own ass's

                we call them congress, a very large Criminal Gang doing acts of Larceny

                  Rick G's avatar - avatar 1766.jpg
                  FEMA Region V Camp #21
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                  Posted: August 18, 2010, 8:05 pm - IP Logged

                  we should be able to do what we want with our money without government interference.

                  Amen, sister!  It was already taxed.

                  Posted 4/6:  IL Pick 3 midday and evening until they hit:  555, 347 (str8).


                    psykomo's avatar - animal shark.jpg

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                    Posted: August 20, 2010, 7:59 pm - IP Logged

                    For many people out there, winning the lottery means they can help out friends and family members with financial problems. But Government requires the donor to file Gift Tax if the amount is over $12,000 (somewhere around there). Besides it being another way for the Government to take money away from generous people, what is the point of a Gift Tax?? How does Gift Tax benefit the people that the Government supposedly serve?

                    Maybe that is why wealthy people don't give hand outs.

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                      psykomo's avatar - animal shark.jpg

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                      Posted: August 20, 2010, 8:35 pm - IP Logged

                      BB00z>>>>>>>>>>what is wrong witch TAX????????

                      I bet ur mother >>is on wlfare>>SSE>>foodstamp'$$

                      Maby that is why weathty people pay  taxes>>>>>>>$$$$$$$$$$$$$$$$$$$

                      PartyJack-in-the-BoxPartyJack-in-the-BoxPartyPAY>>UR>>TAXE'$!

                      people in indonesia>india>cubia>& haiti >rrrrrrrrrrr

                      "STATIVING">>>>>>2222222222222222>"DEATH"!!

                      HELP>>>>>>>>>>>>2222222SAVE"D">people now!!



                      JACKPOT>>22>>"ALL">>LP>>member's

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                      PartyJack-in-the-BoxPartyPartyJack-in-the-BoxPartyWhite BounceDrumWhite Bounce

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                        Posted: August 20, 2010, 9:13 pm - IP Logged

                        Gift tax is $13,000 cash per year per person.  if married, you and a spouse can each give away $13,000 cash to any one person per year.

                        if I'm not mistaken, if you were to pay for a niece's or nephew's education, directly to the school, it doesn't count.  Say the tuition and room and board total over $30,000, you can pay this directly to the school's bursars office and still give $13,000 (or $26,000 from you and your spouse) to the niece or nephew.

                        The other "catch" is say you give away $13,000 in the form of a check and you give away cash (under the table) about $25,000. If more than $10,000 is deposited at a financial  institution, Federal law requires that the bank complete paperwork.  This is part of anti-money laundering.  You also need to be careful in depositing money that would add up to $10,000 over a short period of time.  For example, you deposit $9500 in week 1 and in week 2 you deposit $3500, it could trigger paperwork.

                        Another wrinkle is  you want to buy your responsible 25 year old nephew a new car, you make a deposit of more than $10,000, this too will trigger paperwork.

                         

                        I don't have any problems with triggering paperwork with  the Feds, I have nothing to hide....I win the lottery, it's going to be on my W2G on my 1040 for that year.....my concern is having someone at the bank know that I'm filling the paperwork and I become a " known" customer, kind of like that elderly man in Ca that won the lottery in March where they interviewed the bank tellers and it seemed like he frequents that bank (I don't know how they would know who he was otherwise . I mean I don't walk into a bank where I don't have accounts and start chatting with the tellers just because I'm a friendly person)

                        Didn't mean to veer off topic, but there are alot of quirks that I have thought of in relation to winning.....$10,000 or more in deposits trigger mandatory paperwork at the financial institution, more than $13,000 (or more than $26,000 per married couple) exceeds the gift tax exclusion amount. 

                        I am not fond of the gift tax, i think it penalizes giving to family that may be in need....

                        In addition to blindly giving money away, because it makes a person feel good, I think improper planning can create additional hassles and costs not thought of.....That's why I want to consult a tax/estate attorney AND an account so I can minimize the taxes and costs incurred in giving money away now and in the future so I dont go broke.

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                          Posted: August 20, 2010, 9:41 pm - IP Logged

                          Anybody know what % the gift tax is?

                          It's also said that if you get something in return, it doesn't count as a gift. If you give your kids $50k and they have to wash your car every week, can the Government say it's too much money for the task?? Do you need written proof of service or product to present to the Government?

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                            Posted: August 20, 2010, 10:11 pm - IP Logged

                            Anybody know what % the gift tax is?

                            It's also said that if you get something in return, it doesn't count as a gift. If you give your kids $50k and they have to wash your car every week, can the Government say it's too much money for the task?? Do you need written proof of service or product to present to the Government?

                            i don't know the %, if there is one, but it would probably trigger a W2 that your kids would get or would have to get. The question may not be are they overpaid to wash your car, it may be : are they old enough to receive that kind of money?

                            If the child is an adult, A Family Limited partnership with them as part of it might be in order. You will also have to consider issues like your children and divorce.  They talk about winners and divorce, but the last thing that any parent is going to want is money designated to their son or daughter going to their ex....

                            If your offspring is a minor, the question is going to be what will they be like when an adult....are they going to be responsible or will they be too spoiled and feel entitled to $$ that they delve into things that can get them into trouble (think Paris Hilton)????  My kids are too young to determine what they will be like, so I wouldn't want them to grow up spoiled by wealth that when they turn 21, the wealth eventually kills them. 

                            Part of your question is going to depend on Federal laws, but also state tax laws.  There are so many different ways to arrange for money to be transferred to family, some being better than others.

                            If you are fortunate enough to win (and I hope you do), you will want to state what you want to do with the money, who you designate as a "recipient" and the best way to accomplish this without paying an arm and a leg in taxes.  Interview several attorneys and accountants to see what the options are and to determine who you want helping you with the legal aspects.  The last thing you want to do is improperly set something up on your own after reading about it on the internet and then losing it due to some ^%&^ lawsuit from some idiot who says you gave them a hangnail!!!

                            A typical initial retainer for a lawyer is $3500, they itemize their billable hours and would be a vital resource for you now and in the future should estate planning laws change.

                             

                            There is a book on winning the lottery that says you may want to have an interim legal/financial/accounting team and then have a permanent one ongoing.....just some thoughts.

                             

                            I am not an atty, I do work in a field that deals with atty's, accountants and investments so I see the ins and outs of how people protect their money.  When you win, you are not going to have the time to be the expert ASAP before claiming.  since this is your money, you will want to let your team know how you want to allocate the money to family, their job will be to do it in the most efficient manner.

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                              Posted: August 20, 2010, 10:22 pm - IP Logged

                              I have looked into the various ways to claim, protect the assets, various ways to deposit the money.

                              I know what I want to do with the money.  Generally speaking, how I want to allocate the money to family and charity.  The goal being to prolong the wealth over my lifetime and my children's lifetime.  When/if I win and what is going on in my life may determine how I allocate this money.

                               

                              Right now, my goal is to win....I cross the other bridges when I get there, knowing that I simply cannot blindly claim without having a plan first....
                              There will be planning and preparation.  I will have plenty of time and enough money to splurge, knowing that I want it to last a heck of a long time.

                               

                              Good luck to all.