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Financial Planning / Tax Strategies
|Subject: Re: Avoiding gift tax via a Corporation||Date: 6/28/2006 3:32 PM|
|Author: NaggingFool||Number: 87591 of 121219|
Read up on gift taxes before you get too rolled up in convolutions. Gift taxes are not the same as income taxes.
- The first $12,000 given from one individual to another individual in a tax year is tax free. That means if you're married your parents (2 individuals) could give you and your spouse (another 2 individuals) a total of $48,000 without triggering gift tax issues.
- Beyond that the giver is responsible for gift taxes. The giver must file paperwork, and then they can use some of their lifetime exemption to avoid paying taxes on the gift.
There might have been a way for your parents to let you inherit some of the funds directly without triggering any of these issues, but I don't know enough about estate taxes to be helpful on that topic, and I think the window has passed.
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