Travis

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Travis
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  • Any American tax professionals out there?

    I want to disclaim this before getting going. Gift taxes are not my desk, and while I did learn about them in getting my certification (I'm an EA, not a CPA), much like the Spanish and German I learned in high school, it's all Greek to me now (rimshot). Ultimately, this is not professional advice as I really am not qualified to give it, even if my qualifications would say otherwise. If you have any questions about 1040 type stuff or small scale corporations, I'm much better equipped there.

    That said, the current annual exclusion is $15k as you mentioned. To the best of my knowledge there is nothing to do if you don't cross that threshold. The only exception I can think of that would make me wrong is if you have filed in the past and you have to do the sort of filing whose only point is to maintain the calculation, but I'm ~95% sure it is just not something that needs to be done. Also, double this for a married couple, but make the gifts separately (2 checks for $15k, or make sure that property is jointly owned, which in most cases it will be).

    You are also correct about the lifetime amount (looked it up to be safe). You need to file if you're over $15k for a gift, but it will be entirely offset. The thing that I really can't guarantee, but only state my somewhat educated belief is that there is no implication to your final estate if it ends under that amount. It makes sense because the lifetime exclusion seems to line up with the total exclusion for the estate. That said, I just don't know all of the mechanics concretely. Gift taxes aren't my bailiwick.

    I'll try to keep an eye on this thread, but if it all still goes without a concrete answer in a few days I can ask my boss and I'm sure he can rattle off whatever you need. I just don't want to bug him, particularly on a Friday when he only works a half day.

    Hope that helps.

    adobo1148awookieeHatorianNoel
  • What's Making Your Day Today?

    I just got the results from my scientific study! Years and years of work, finally culminated.

    (may not make sense to people who don't/didn't watch Psych)

    cdrive
  • What grinds my gears (today)

    Hatorian said:
    Travis said:
    Hatorian said:
    Travis said:
    Hatorian said:
    People telling me what to do with my money…

    If I want to burn it in front of you that’s my choice…I earned it..not anyone else…foh

    #freebritney

    Also for what it's worth, I know I went on a bit of a Branson/Bezos rant yesterday, but I don't believe that I should have any power over how they spend their money. I just don't think the news should masturbate over their bank accounts and pretend that they're doing something so great for society about it. It's a news story, but it shouldn't be an hour + long news story, complete with a super transparent propaganda speech from Virgin Air's head of PR.
    Travis said:
    Hatorian said:
    People telling me what to do with my money…

    If I want to burn it in front of you that’s my choice…I earned it..not anyone else…foh

    #freebritney

    Also for what it's worth, I know I went on a bit of a Branson/Bezos rant yesterday, but I don't believe that I should have any power over how they spend their money. I just don't think the news should masturbate over their bank accounts and pretend that they're doing something so great for society about it. It's a news story, but it shouldn't be an hour + long news story, complete with a super transparent propaganda speech from Virgin Air's head of PR.
    Most of their money is in stock anyway. If they tried to sell it to appease people their companies could tank. Also they lose control over THEIR companies. I ain’t telling them to do that. 
    I did want to, much, much more quickly respond to this. Maybe that's an inherent problem in our system. Maybe it is his problem, or Amazon's problem that he has his wealth on such singular footing. I mean, aren't you kind of saying that Bezos is "too big to fail (to call back to the bank crisis)?" I mean, equity is real dollars, and it's true that from a tax perspective it would be insane to try to quantify some sort of "unrealized basis valuation" year over year, but these companies run rough-shot over everyone and hide behind "unrealized gains" to achieve massive wealth without needing to pay the bill. It's a real problem. A giant problem.

    Problem is they just move the money. We will eventually tax them properly and they will find a way to move the money like they always do.

    my company uses a total legal accounting practice that allows us to recognise revenue on contracts that have no commitment…think about that. 


    I totally get it. These are people with nearly if not unlimited resources. I suppose the thing that needs to happen to break the deadlock is to actually leverage American consumerism and protect a fair tax system and its consumers. I mean, being "afraid" (or being lobbied and back scratched into non-resistance) of giant corporations is unsustainable. The Internet has completely changed commerce, but it has also made top tier companies largely untouchable by competition. Maybe this isn't a complete disaster now, but it will be more and more until some super bad, political unbalancing shit happens. I admit, I am not smart enough to have the answers, but we're on a terrible road and it's probably going to take some really uncomfortable, drastic steps to get off of it. There was a time when corporations at least seemed to care about the communities that thrived symbiotically with them. Now because it is realistically impossible to compete with the heavy hitters, consumers have no real alternative options and thus no real leverage.

    Not to mention, our economy being so top heavy is terrible. If all the money is in so few hands it kills growth. Those few people only need so much shit. A more spread economy inspires commerce and thus production. I mean, I don't have a finance degree or anything. This is mostly just intuited, but I just know that we're on a terrible road and it's only going to get worse and worse. I know for sure that being a consumer isn't at all like it was even a couple decades ago.

    Hatorian
  • What grinds my gears (today)

    I understand that, but as a tax preparer one of my major pet peeves (that I certainly would not air out to my clients of course) is when you have someone who made a ton of money on investments and thus it's contained to an investment account and they think that because it's not liquid it's crazy that they would be taxed on it. I mean, you quantifiably made that money on dividends, interest, and capital gains, etc. It doesn't even touch the idea that you've very likely made ~20% on unrealized investment growth. Here's a wacky idea, why not pay the tax out of the money that it's generated on from the investment account. You know, just like people have money taken out of their wages. It drives me nuts because not only do they get this sweetheart deal on long term investments, but they whine about it because they "don't see the money." Not to be all "fuckin rich people, man," but fuckin rich people, man. Also, that's doesn't even touch the equity which is often where it really comes in (cough Bezos cough). It's rigged to hell.

    I guess my ultimate response is "wake me up when we start taxing them properly. It'll never happen because rich people get people elected and it takes those elected peoples to change the tax code. So, they'll continue to whine about paying like 15% after everything all the strategic maneuvering and deductions, etc. or often less while people who work pay 20% + FICA.

    I always come back to this one, 2020 return dude with all investments makes $135k in income (MFJ), $109k taxable. Generates (I shit you not) $4,350 in taxes. Mirror the taxable income but put it on a W-2? $15,500 in tax. Simply by virtue of already having money and thus needing it less. Both parties have had term after term after term to fix this and crickets. It'll never get fixed. We're still doing fucking trickle down econ ~40 years after obtaining proof that it's complete bullshit.

    I think that's not even my problem with the space stuff. I'm just sick of this rich people worship. If they actually had to do what was fair and equitable with everyone else. Play the same game under the same principles that the rest of us do the tears would create new rivers. The volume of the whining would call aliens to our planet from galaxies away.

    I know that's over the top, but just doing my job as long as I have it's kind of an exposed nerve for me.

    HatorianDee
  • What grinds my gears (today)

    Hatorian said:
    People telling me what to do with my money…

    If I want to burn it in front of you that’s my choice…I earned it..not anyone else…foh

    #freebritney

    Also for what it's worth, I know I went on a bit of a Branson/Bezos rant yesterday, but I don't believe that I should have any power over how they spend their money. I just don't think the news should masturbate over their bank accounts and pretend that they're doing something so great for society about it. It's a news story, but it shouldn't be an hour + long news story, complete with a super transparent propaganda speech from Virgin Air's head of PR.
    DeeHatorian