I have a friend who is assigning me power of attorney and paying me $250,000. Not a joke. Is there any way to avoid 100,000 dollars in taxes? I need to save as much of it as possible.
2007-05-09 13:12:04 · 3 answers · asked by Pixie&Zoe 2 in Business & Finance ➔ Taxes ➔ United States
I think you can find the answer of your question free of charge at
http://www.attorneylaw.blogspot.com
Give it a try.
2007-05-12 05:56:50 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sounds like a TOTAL scam to me! When someone gives you PoA, they are authorizing you to act on their behalf. There are no direct tax consequences with a PoA, but your attorney-in-fact could commit you to taxable transactions that you would be fully responsible for if they were within the scope of the PoA.
If your "friend" is paying you $250,000 there is no PoA that is going to get either of you off the hook for any taxes due. It could either be treated as a gift by the IRS and your "friend" will have to pay the Gift Tax on it, or the IRS could consider it ordinary income to you and you'll have to pay income tax on it. On the other hand, if your "friend" is giving you $250,000 and a PoA authorizing you to purchase a home in your friend's name and you do so, there would not be any tax consequences for either of you. If part of the $250,000 was a fee or commission for your efforts, THAT part would be taxable income to you.
Without all of the details of what you and your "friend" are up to, it's not possible to provide any meaningful guidance on the tax consequences for either of you.
2007-05-09 21:50:27 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
see a tax guy and get defferent opions and go from there she could give u gifts?
2007-05-09 20:25:13 · answer #3 · answered by mars101_2000 3 · 0⤊ 1⤋