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[bsobel]

Originally posted by: TheSiege

Originally posted by: FoBoT
no, that isn't a gift

The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.

well if i deem the work done on my house to be 12k
giving him $11,999.99 would be less then full value and would qualify as a gift then?

Wow, clueless. Btw, is grandma alive? If so, EACH of them can gift each year, doubling the allowable amount.

 

[IronWing]

Is her grandma alive? If so then 12k could come from grandma and 12k from grandpa so none of the 12k needs to be reported. If the women was married here grandparents could give her up to 48k per year tax free by each grandparent giving each spouse 12k.


Edit: beat to the draw.

 

[her209]

PICS?

 

[bsobel]

Originally posted by: TheSiege
every 6 months this chick at works get 12k from her grandpa.
he writes a check to her and she deposits it into her bank account

no trust fund, no bond, straight cash

now i told her that she needs to claim that on her taxes
she thinks she doesnt because he has already payed taxes on it and its a gift

now i know she is dumb, i know i am right, i just need to prove it

any ideas?

Just so we are clear, you are 100% incorrect and if you don't STFU this has owenage of the year potential (not great, but it's there)

 

[bsobel]

Originally posted by: FoBoT
her grandpa should be the one consulting an accountant, if he did this right, like maybe with a 529 plan or something

If he's still married, he's doing it exactly right already.

 

[gsethi]

is his grandpa planning to adopt anyone? Is she married ? pics (of her, not of the grandpa )

 

[EagleKeeper]

She does not have to pay taxes on thse funds received.
Any income derived from the funds after that point is taxable. (ie. interst/dividends,etc)

Grandpa has to pay a gift tax on anything over the $12K that he gives her in a given year.

Simple.

 

[dquan97]

Originally posted by: EagleKeeper
She does not have to pay taxes on thse funds received.
Any income derived from the funds after that point is taxable. (ie. interst/dividends,etc)

Grandpa has to pay a gift tax on anything over the $12K that he gives her in a given year.

Simple.

Or grandpa can use his $1MM lifetime gift tax exclusion.

 

[Squisher]

Originally posted by: dquan97

Originally posted by: EagleKeeper
She does not have to pay taxes on thse funds received.
Any income derived from the funds after that point is taxable. (ie. interst/dividends,etc)

Grandpa has to pay a gift tax on anything over the $12K that he gives her in a given year.

Simple.

Or grandpa can use his $1MM lifetime gift tax exclusion.

I was just going to mention that, but that exclusion is counted against any estate taxes you maybe able to exclude.