If someone gave me 50 million dollars, do I have to pay taxes on it? What are the loopholes?
2007-03-05 00:59:57 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If someone gave you a legitimate gift, YOU would not owe any tax on it. No "loophole" is needed, that's the law. The donor would have a substantial Gift Tax liability since Gift Tax is paid by the donor, not the recipient.
2007-03-05 03:11:07 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
No loopholes needed. You don't have to pay tax on money that someone gives you. Assume that Bill Gates thinks that you are a very, very nice person and gives you $50 million, Bill must pay a tax. But if for some reason, Bill can't or doesn't pay, IRS may come after you for the tax. If the gift was made in 2006, the first $12,000(annual exclusion) that was given to each person was not taxable. Also gifts between spouses are not taxable if both live in the U.S.
The tax on a $50 million gift would be $22,855,280(disregarding the lifetime estate/gift tax exclusion), so it would actually cost Bill about $73 million. The upshot is that you should be a very, very nice person, at least when Bill is watching.
2007-03-05 03:56:10 · answer #2 · answered by taxman 2 · 1⤊ 0⤋
No loopholes. The recipient does not pay taxes on a gift. But depending on the amount, the giver might have to pay a gift tax - and $50 million is way into that range, so the giver would be responsible to file a gift tax return and pay tax on the gift.
2007-03-05 01:23:26 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
In the US the annual gifting limit is 12,000 a year I think. You can give someone unlimited amounts of gift cash if it is used towards education however. It would be hard to hide 50 million however
2007-03-05 04:02:28 · answer #4 · answered by Devdude 5 · 0⤊ 0⤋
If it was a gift, you don't pay taxes. The person who gave you the gift will eventually have to pay taxes on it.
2007-03-05 13:25:51 · answer #5 · answered by m s 1 · 0⤊ 0⤋
you does not pay taxes on it. The U.S. does not enable the guy who gets a present from relatives to pay tax on that present. (while the U.S. does enable a tax on a present to be paid, it demands that the tax be paid in basic terms by the guy who gave the present, not by the guy who gained the present). Your spouse's mom would would desire to pay tax on the present. The U.S. demands a U.S. citizen who provides an $80,000 present to pay tax on it. i don't understand in case your spouse's mom's united states of america has this requirement. you're required to fill out some workplace work concerning to the resource. it particularly is for 2 achievable motives: a million) to verify which you're actually not laundering drug funds, etc. 2) to verify that it particularly is not something on which you will would desire to pay tax, including investment earnings.
2016-12-18 06:02:06 · answer #6 · answered by erke 4 · 0⤊ 0⤋