Gifting Letter to Keep Your Identity Safe

Thank you for that.
A question.
If a couple gifts the $26000 to a single individual,must the receiver pay tax on the combined gift,or would $13000 be tax free to the giftee,and tax due on the other gift of $13000?
I have always wondered about that.

Since each individual can gift $13,000, there is no tax due on the gift of $26,000.

Tax mom,


Do you know how much taxes a person receiving a large financial gift ( for the sake of argument, let's say $100,000), would have to pay?

Thank you in advance for your help!

I know, I know,

TOO MUCH!

Frequently Asked Questions on Gift Taxes:

http://www.irs.gov/businesses/small/article/0,,id=108139,00.html

1alaskan,


That type of wisdom is the reason you get paid the big bucks on OOM! LOL

Thanks Tyler!

Alaskan: Pay Cut!

Why didn't you come up with the link! LOL

Hey, I work for tips!

But it is a good link, thanks Tyler

taxmom wrote:Since each individual can gift $13,000, there is no tax due on the gift of $26,000.

Would that require separate accounts in each individual's name? Otherwise it would look like the same entity wouldn't it? Not a tax expert, just wondering and thinking out loud here.

TS wrote:Gifting letter to keep your identity safe (CAP1)
This is an example of a letter that you can give to your "private banker" to assist you in keeping your identity secure but also at the same time allow you to give to others who are in need.

This is an example for gifting someone $13,000(tax-free - $13,000/per person or $26,000/per couple)!

If you decide to gift more to a particular person, you will have to fill out a separate form for your taxes (the % below also will change accordingly)!

The law now states that you can gift up to $5 Million - through 2012 - tax-free (this is also in your life-time; one time).

This does not include when you give to a charity which is considered a charitable donation and is completely separate!

So let's all do our part to "Pay-It-Forward" and to help others who are in need (and also who just refused to see the light at the end of the tunnel
regarding this blessing)!!!
- m.
________________________________________

On behalf of my client, who wishes to remain anonymous, please accept this generous gift and consider the following to be a "good steward"of your money:

1. Pay-It-Forward: Take 10% ($1,300) and give it to someone else in need;

2. Pay Yourself: Take 10% ($1,300) and do something special for yourself - and ENJOY;

3. INVEST in your future: Take the remainder and put a portion into your local bank account(if you don't have an IRA, open one); pay down a portion of your debt.

If you have any questions regarding this letter, feel free to give me a call but rest assured that this is real and you will have no problems in depositing the check.

Again, on behalf of my client, many good wishes On behalf of my client, who wishes to remain anonymous, please accept this generous gift and consider the following to be a "good steward"of your money:

1. Pay-It-Forward: Take 10% ($1,300) and give it to someone else in need;

2. Pay Yourself: Take 10% ($1,300) and do something special for yourself - and ENJOY;

3. INVEST in your future: Take the remainder and put a portion into your local bank account(if you don't have an IRA, open one); pay down a portion of your debt.

If you have any questions regarding this letter,feel free to give me a call but rest assured that this is real and will have no problems in depositing the check.

Again, on behalf of my client, many good wishes to you throughout 2012.

Sincerely,



Name of Private Banker
Contact

TS: THANK YOU for the 'heads up' and 'reasonable and helpful' advice to share with my private banker... (after confirming with professional counsel, of course) in consideration of giving gifts... and receiving maximum tax benefits while minimizing tax liability. Have a great day... and days to come... and may you PROSPER greatly! Thanks again!

Help this thick headed reader. This tax free benefit--does it mean the gifter or the receiver pays no taxes. In addition to the 13K, are you saying I can give 5 million away with no taxes?--but is it no taxes for the gifter or the gifted???? Thanks.

Each individual can gift up to $13,000 per year per individual with no tax due from either the recipient or the giver. An individual can give $13,000 to as many individuals as they want.

If more than $13,000 per individual ($26,000 per married couple) is given to an individual, the recipient owes no taxes. The giver has a more complicated issue. They must file a gift tax return. Most likely would owe no taxes, but the amount over $13,000 ($26,000 married couple) reduces their lifetime gifting allowance of $5,000,000. This amount changes periodically.

To reduce any questions when giving as a couple, it would be a good idea for each spouse to write out a check for the $13,000 to the recipient. The checks can come from the same account if it is a joint account.

Once you receive a financial gift, taxes are due on anything that money earns. For example, if you put it in a CD and earn interest, then tax is due on that interest earned.

Of course you should seek advice from your own tax professional who knows more about your individual situation.

Taxmom,


Thank you very, very much for the information!

Your information will be very helpful.

Good luck on with the RV!

Gifting scams have been around for a long time, and yes they are illegal.

https://lawyerrant.wordpress.com/favorite-scams/gifting-circles/

http://www.ncdoj.gov/Consumer/Investment-Work-and-Money-Making-Schemes/Gifting-Clubs.aspx

http://www.deseretnews.com/article/865668461/Blessing-Loom-gift-scam-resurfaces-on-social-media.html