News for hackers. Stuff that matters.

A comment on John Carmack: I loaned money to anyone that asked me. Parent comment

Re:John Carmack: I loaned money to anyone that asked me by positr0n on Monday January 09, 2023 @12:57PM (#34313444)
Private gifts are not taxed until it is over $12 million dollars (the estate tax limit).

The IRS does require you to report it if it goes over $16k from one individual to another. This is solely to keep track of that $12M lifetime gift limit.

Totally reasonable IMO unless you don't believe in inheritance taxes at all.

so you could do $48k from a couple to their child and child's spouse.

[ Parent | on HN ]
Re:John Carmack: I loaned money to anyone that asked me by FpUser on Monday January 09, 2023 @01:01PM (#34313518)
Understood and yes it does sound reasonable. I still cringe a bit.
[ Parent | on HN ]
Re:John Carmack: I loaned money to anyone that asked me by eddsh1994 on Monday January 09, 2023 @01:18PM (#34313835)
In several European countries this is a trick to get around inheritance tax so, if you die several years after the gift, it's taxed as per inheritance.
[ Parent | on HN ]
Re:John Carmack: I loaned money to anyone that asked me by sebzim4500 on Monday January 09, 2023 @02:05PM (#34314519)
Yeah. In the UK it is a common trick to back date a gift to your children 7 years so you don't have to pay inheritance tax on it. Sometimes it needs to preparation, you need some sort of evidence that the gift happened 7 years before death, but faking that evidence is far from impossible.
[ Parent | on HN ]