- *From Wikipedia: * Gift tax exemptions There are two levels of exemption from the gift tax. First, gifts of up to the annual exclusion ($13,000 per recipientMessage 1 of 8 , Jan 29, 2013View SourceFrom Wikipedia:
Gift tax exemptions
There are two levels of exemption from the gift tax. First, gifts of up to the annual exclusion ($13,000 per recipient in 2009-2012) incur no tax or filing requirement. By splitting their gifts, married couples can give up to twice this amount tax-free (although they must file a gift return). Note that each giver and recipient pair has their own unique annual exclusion; a giver can give to any number of recipients and the exclusion is not affected by other gifts that recipient may have received from others.
Second, gifts in excess of the annual exclusion may still be tax-free up to the lifetime estate basic exclusion amount ($5,120,000 in 2012), although for estates over that amount such gifts might increase estate taxes. Taxpayers that expect to have a taxable estate may sometimes prefer to pay gift taxes as they occur, rather than saving them up as part of the estate.
Furthermore, transfers (whether by bequest, gift, or inheritance) in excess of $1 million may be subject to a generation-skipping transfer tax if certain other criteria are met.
Tax deductibility for gifts
Pursuant to, property acquired by gift, bequest, devise, or inheritance is not included in gross income and thus a taxpayer does not have to include the value of the property when filing an income tax return. Although many items might appear to be gift, courts have held the most critical factor is the transferor's intent. Bogardus v. Commissioner, 302 U.S. 34, 43, 58 S.Ct. 61, 65, 82 L.Ed. 32. (1937). The transferor must demonstrate a "detached and disinterested generosity" when giving the gift to actually exclude the value of the gift from the taxpayer's gross income. Commissioner of Internal Revenue v. LoBue, 352 U.S. 243, 246, 76 S.Ct. 800, 803, 100 L.Ed. 1142 (1956). Unfortunately, the court's articulation of what exactly satisfies a "detached and disinterested generosity" leaves much to be desired.
=========================On Tue, Jan 29, 2013 at 6:02 PM, hobot <hobot@...> wrote:
Best to deny any gifts as those can be taxed, I'd tell em loans from
family friends your oral oath and their faith established the contract.
- How many times do I have to explain to people that the IRS does not give a rat s butt where it gets its federal reserve notes from:Message 2 of 8 , Jan 31, 2013View Source
How many times do I have to explain to people that the IRS does not give a rat's butt where it gets its federal reserve notes from:
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Kickbacks. You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.
Now what TYPE could you list on Line 21 and not implicate yourself? Well....according to the IRS there are primarily two types of income: Taxable and Non taxable. Duh! So what type goes on the form?
Why doesn't the IRS care about income coming from questionable sources? Aside from the fact they get brownie points for running the world's largest extortion racket for Congress.....A little reflection will indicate why this is so! The law cannot require an impossibility. You can't be required to file a return on all income and yet be denied the opportunity to do so.
[I saved for the advanced student the topic of liability and duty to file a return and simply assumed in the above discussion we were dealing with the "ritual of the enslaved"--that ritual where government need trumps individual rights and needs...that ritual where the customary aspects of society displaces and negates a fair reading of actual law...that ritual where the sheepeople actually perceive they live in a free society when the degree of their enslavement is measured at +40%.]