No wonder Trump don't want to release his tax returns!

[Belsnickel]

(10-04-2018, 09:29 AM)michaelsean Wrote: Right but if the receiver pays an income tax then no gift tax is necessary.

Ah, I see what you're saying. The issue therein becomes if they used schemes to avoid taxes through gift/inheritance taxes by moving it through regular income that were outside the law.

I'm not going to say one way or the other because tax law is complex and without all of the documents we cannot say for sure. It's not an easy thing to look into, really.

[*Nately120*]

No wonder Trump is such a failure, the guy accepted a handout.

[*michaelsean*]

I would have definitely been Fred Jr. in the family. Take less but still plenty, do less , be left alone, and eventually die of alcoholism.

[fredtoast]

A lot of the stuff they are accusing Trump of is hard to prove.

It is a common move for parents to give assets to their children at a greatly reduced value to avoid taxes. Gifts given away while the parents are alive are not subject to tax, but they reduce the "unified credit" which determines how much tax is paid at death. I don't know the exact numbers now but if the unified credit is $5 million that means a person can give away $5 million while they are alive with no tax consequences or wait until death when it can be inherited with no taxes. So even if there is no tax on a gift it has to be filed with the IRS (If it is over $10k per year) so that the unified credit can be reduced.

[Belsnickel]

(10-04-2018, 02:12 PM)fredtoast Wrote: A lot of the stuff they are accusing Trump of is hard to prove.

It is a common move for parents to give assets to their children at a greatly reduced value to avoid taxes. Gifts given away while the parents are alive are not subject to tax, but they reduce the "unified credit" which determines how much tax is paid at death. I don't know the exact numbers now but if the unified credit is $5 million that means a person can give away $5 million while they are alive with no tax consequences or wait until death when it can be inherited with no taxes. So even if there is no tax on a gift it has to be filed with the IRS (If it is over $10k per year) so that the unified credit can be reduced.

This is misleading. There is a gift tax that kicks in for gifts over a certain amount in a year. For example, in 2018 you can give anyone, including your children, only $15,000 per individual without being required to pay taxes on the remaining amount. The tax rate for anything beyond that is 40% and is payable by the donor. Now, this is the 2018 exclusion. Here is the historical information: https://taxfoundation.org/federal-estate-and-gift-tax-rates-exemptions-and-exclusions-1916-2014/

So if you give someone more than the yearly exclusion, taxes are paid in that year regardless of lifetime exclusions.

[fredtoast]

(10-04-2018, 05:41 PM)Belsnickel Wrote: This is misleading. There is a gift tax that kicks in for gifts over a certain amount in a year. For example, in 2018 you can give anyone, including your children, only $15,000 per individual without being required to pay taxes on the remaining amount. The tax rate for anything beyond that is 40% and is payable by the donor. Now, this is the 2018 exclusion. Here is the historical information: https://taxfoundation.org/federal-estate-and-gift-tax-rates-exemptions-and-exclusions-1916-2014/

So if you give someone more than the yearly exclusion, taxes are paid in that year regardless of lifetime exclusions.

But you can use the "unified credit" against any gift tax.  All it does is reduce the amount you can leave tax free when you die.

So the donor would be charged a tax for any amount over $15K to one person, but it would be paid from the unified credit.

[*michaelsean*]

I had forgotten, but now that Fred brings it up, I do recall hearing about that unified credit here. It won’t matter in this case as it seems it’s way past 5 million.

[*michaelsean*]

(10-04-2018, 05:41 PM)Belsnickel Wrote: This is misleading. There is a gift tax that kicks in for gifts over a certain amount in a year. For example, in 2018 you can give anyone, including your children, only $15,000 per individual without being required to pay taxes on the remaining amount. The tax rate for anything beyond that is 40% and is payable by the donor. Now, this is the 2018 exclusion. Here is the historical information: https://taxfoundation.org/federal-estate-and-gift-tax-rates-exemptions-and-exclusions-1916-2014/

So if you give someone more than the yearly exclusion, taxes are paid in that year regardless of lifetime exclusions.

I think it’s a max of 40%, are you sure it isn’t payable by the donee? This is after tax money for the donor.

[Vas Deferens]

Apparently the health of our communities and and the nation as a whole plays second fiddle to personal gains.

Seems incongruous to an oath of office of the highest office in the land. But whatever. **** Obama right?!

[Belsnickel]

(10-04-2018, 09:57 PM)michaelsean Wrote: I think it’s a max of 40%, are you sure it isn’t payable by the donee? This is after tax money for the donor.

It is a max, but in this situation it would be the max more than likely. I am also certain that it is payable by the donor.