“Let’s have some fun I’m offering two grants of $5,000 for whatever you want”

Re:“Let’s have some fun I’m offering two grants of $5,000 fo... by firstpost1234 on Tuesday April 04, 2017 @11:11PM (#14039371)

i believe the gift tax applies once you get above $14,000 in value in any given tax year.

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Re:“Let’s have some fun I’m offering two grants of $5,000 fo... by sokoloff on Tuesday April 04, 2017 @11:44PM (#14039494)

The gift tax is accounted for by the giver, not the recipient, and is per-(donor, recipient) pair.

Person A can give persons C and D $14K each and that all falls under the annual exemption. Persons A and B can together give person C $28K and person D $28K and still be within the exemption (2 spouses giving to 2 kids is a common example).

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Re:“Let’s have some fun I’m offering two grants of $5,000 fo... by wavefunction on Tuesday April 04, 2017 @11:31PM (#14039458)

I can't speak to that but any gift of $11,000 or more is taxed.

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Re:“Let’s have some fun I’m offering two grants of $5,000 fo... by JauntTrooper on Wednesday April 05, 2017 @12:26AM (#14039634)

No it's not. The US gift tax is widely misunderstood.

In the US, any gifts over $5.49 million over the course of your lifetime is taxed.

Any gift over $14k in a single year needs to be disclosed to the IRS, but it's not taxed. They're just keeping track of it in case you hit the $5.49 million lifetime cap, and they reduce the amount of your estate tax exemption by that amount.

It's all set up to stop people from avoiding the estate tax by gifting a lot of their wealth while alive.

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Re:“Let’s have some fun I’m offering two grants of $5,000 fo... by sokoloff on Tuesday April 04, 2017 @11:40PM (#14039487)

The annual gift tax exemption is $14K for 2014 through 2017.

Source: https://www.irs.gov/businesses/small-businesses-self-employe...

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