*** OFFICIAL *** Druff & Friends Show Thread for 01/08/14 -- $55 freeroll - -- NOTE SPECIAL DAY

[jively]

Druff,

Not sure if this came up on 2+2; I did not look at any threads there.

Your explanation about gift and estate tax was pretty good. However, if a person gives more than $14,000 to a non-spouse in a calendar year, they don't automatically have to pay any gift tax. They do have to file a form with the IRS, and the amount over $14,000 starts to use up their lifetime exclusion, so that when they die, they can transfer less to a non-spouse before they have to owe any tax.

So, if someone gives a $400,000 house to their parents, $14,000 x 2 is excluded, and they file a form saying $372,000 was given to their parents, and no tax is due.

The lifetime exclusion is now $5,340,000 which is the amount you can give to a non-spouse at death, unless you used part of it in your lifetime. The estate tax rate is 40%. It hasn't been 55% since 2001. (There may also be estate and gift taxes based on the state where the giver lives. Some exclusions are lower than $5 million, but the tax rates are a lot lower as well.)

-Tom

P.S. I've been told by attorneys that even when people are supposed to file these forms, almost nobody does... It's usually parents giving gifts over $14,000 to their children.

[Dan Druff]

Druff,

Not sure if this came up on 2+2; I did not look at any threads there.

Your explanation about gift and estate tax was pretty good. However, if a person gives more than $14,000 to a non-spouse in a calendar year, they don't automatically have to pay any gift tax. They do have to file a form with the IRS, and the amount over $14,000 starts to use up their lifetime exclusion, so that when they die, they can transfer less to a non-spouse before they have to owe any tax.

So, if someone gives a $400,000 house to their parents, $14,000 x 2 is excluded, and they file a form saying $372,000 was given to their parents, and no tax is due.

The lifetime exclusion is now $5,340,000 which is the amount you can give to a non-spouse at death, unless you used part of it in your lifetime. The estate tax rate is 40%. It hasn't been 55% since 2001. (There may also be estate and gift taxes based on the state where the giver lives. Some exclusions are lower than $5 million, but the tax rates are a lot lower as well.)

-Tom

P.S. I've been told by attorneys that even when people are supposed to file these forms, almost nobody does... It's usually parents giving gifts over $14,000 to their children.

Somehow I never knew this. Yes, I think someone also mentioned it on 2+2, but I ditched that thread awhile ago when I felt I was becoming a distraction there, with the various dupes/trolls and whatnot.

[Brittney Griner's Clit]

Druff,

Not sure if this came up on 2+2; I did not look at any threads there.

Your explanation about gift and estate tax was pretty good. However, if a person gives more than $14,000 to a non-spouse in a calendar year, they don't automatically have to pay any gift tax. They do have to file a form with the IRS, and the amount over $14,000 starts to use up their lifetime exclusion, so that when they die, they can transfer less to a non-spouse before they have to owe any tax.

So, if someone gives a $400,000 house to their parents, $14,000 x 2 is excluded, and they file a form saying $372,000 was given to their parents, and no tax is due.

The lifetime exclusion is now $5,340,000 which is the amount you can give to a non-spouse at death, unless you used part of it in your lifetime. The estate tax rate is 40%. It hasn't been 55% since 2001. (There may also be estate and gift taxes based on the state where the giver lives. Some exclusions are lower than $5 million, but the tax rates are a lot lower as well.)

-Tom

P.S. I've been told by attorneys that even when people are supposed to file these forms, almost nobody does... It's usually parents giving gifts over $14,000 to their children.

Somehow I never knew this. Yes, I think someone also mentioned it on 2+2, but I ditched that thread awhile ago when I felt I was becoming a distraction there, with the various dupes/trolls and whatnot.

Finally you admit something.