|Posted: February 7, 2012, 12:21 am - IP Logged|
A quick LLC question.
I know that this year may be the last year to give a person $13,000 without being taxed.
If my hubby & I win the lottery and form an LLC, can I give $13k to Relative X and have my hubby give $13K to Relative X too? Or since the LLC is considered one entity, we can only give $13K total?
Is it the same with a Blind Trust?
As a lotto winner, you and your hubby can give any person up to $26,000.00 as a joint gift without incuring a gift tax. You have to fill out an irs form 709 ......heres the exact quote from the IRS............, " Currently, gift splitting allows married couples to give up to $26,000.00 to a person without making a taxable gift"........" If you or your spouse makes a gift to a third party, the gift can be considered as one half made by you and one half by your spouse. This is known as gift splitting. Both of you must agree to split the gift. If you do, you can each take the annual exclusion for your part of the gift."...."if you split a gift you made, you nust file a gift tax returnto show that you and your spouse agree to use gift splitting. You must file form 709 even if half of the split gift is less than the annual exclusion." ....This quote is from publication 950 dated 10/2011
You and hubby could give another couple legally $52,000.00 without any party paying taxes(gift or income).... By doing the gift splitting as described above, you and hubby could give the female $26K and her hubby $26K each...not a bad deal for an untaxable gift !!
You can do this on your own without the guise of an LLC......not sure about doing this under any kind of trust.....There maybe tax advantages under a corporate or blind trust situation that i have no knowledge of...good luck
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