DC Tom Posted June 22, 2012 Share Posted June 22, 2012 What type of account did he set up to put them in, an individual or UTMA/UGMA and did you pay income taxes or cap gains? Oh and be aware that the basis in not calculated at the time of the gift. He gifted you his cost basis. Actually, he gave me the stock certificate. And I know I had to use his cost basis; that was part of the fun. Link to comment Share on other sites More sharing options...
Chef Jim Posted June 22, 2012 Share Posted June 22, 2012 Actually, he gave me the stock certificate. And I know I had to use his cost basis; that was part of the fun. So did you pay income or cap gains taxes? Link to comment Share on other sites More sharing options...
DC Tom Posted June 22, 2012 Share Posted June 22, 2012 So did you pay income or cap gains taxes? Probably cap gains, since I was going off the cost basis. But it was 20 years ago, I don't recall THAT clearly. And yes, I see your point. Link to comment Share on other sites More sharing options...
fjl2nd Posted June 23, 2012 Share Posted June 23, 2012 TAX FREE???? !@#$ THAT I'm not sure if this sarcasm or you think she should pay taxes on it? Link to comment Share on other sites More sharing options...
DC Tom Posted June 23, 2012 Share Posted June 23, 2012 I'm not sure if this sarcasm or you think she should pay taxes on it? Why shouldn't she? Because her feelings were hurt? Link to comment Share on other sites More sharing options...
fjl2nd Posted June 23, 2012 Share Posted June 23, 2012 Why shouldn't she? Because her feelings were hurt? I'm not saying she should or shouldn't. I was just wondering. I don't care whether she gets taxed or not. I think there is an argument for both sides. Link to comment Share on other sites More sharing options...
Chef Jim Posted June 23, 2012 Share Posted June 23, 2012 I'm not saying she should or shouldn't. I was just wondering. I don't care whether she gets taxed or not. I think there is an argument for both sides. And your arguments would be? Link to comment Share on other sites More sharing options...
fjl2nd Posted June 23, 2012 Share Posted June 23, 2012 And your arguments would be? The basic arguments would be: Taxing her: She did nothing to earn this money and it could be considered a lot of untaxed "income". Or it counts as one giant gift and is subject to taxation. Not taxing her: It is technically small gifts from many different people so it shouldn't be subject to taxation. Again, these are just simple statements that certainly doesn't cover each entire option. Link to comment Share on other sites More sharing options...
DC Tom Posted June 23, 2012 Share Posted June 23, 2012 The basic arguments would be: Taxing her: She did nothing to earn this money and it could be considered a lot of untaxed "income". Or it counts as one giant gift and is subject to taxation. Not taxing her: It is technically small gifts from many different people so it shouldn't be subject to taxation. Again, these are just simple statements that certainly doesn't cover each entire option. Windfall tax. Take it all. Link to comment Share on other sites More sharing options...
3rdnlng Posted June 23, 2012 Share Posted June 23, 2012 The basic arguments would be: Taxing her: She did nothing to earn this money and it could be considered a lot of untaxed "income". Or it counts as one giant gift and is subject to taxation. Not taxing her: It is technically small gifts from many different people so it shouldn't be subject to taxation. Again, these are just simple statements that certainly doesn't cover each entire option. How about this money has already been taxed vs. the IRS tax code pertaining to gifts? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted June 23, 2012 Share Posted June 23, 2012 Or: Tax her. She lives in a great country like the US... Where else can somebody turn their pain into financial joy of this magnitude? Link to comment Share on other sites More sharing options...
Chef Jim Posted June 23, 2012 Share Posted June 23, 2012 The basic arguments would be: Taxing her: She did nothing to earn this money and it could be considered a lot of untaxed "income". Or it counts as one giant gift and is subject to taxation. Not taxing her: It is technically small gifts from many different people so it shouldn't be subject to taxation. Again, these are just simple statements that certainly doesn't cover each entire option. So your augment for taxing her is she did nothing to earn the money so therefore she should be taxed as earned income? Great argument. Or: Tax her. She lives in a great country like the US... Where else can somebody turn their pain into financial joy of this magnitude? So you're ok with double taxation? And if so give me a good reason as to why. The keyword there is good. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted June 23, 2012 Share Posted June 23, 2012 So you're ok with double taxation? And if so give me a good reason as to why. The keyword there is good. She has never been doubled taxed. Simple search: "Double taxation, in general, is not forbidden by our fundamental law, since we have not yet adopted as part thereof the injunction against double taxation found in the Constitution of the United States. Double taxation becomes obnoxious only where the taxpayer is taxed twice for the benefit of the same governmental entity or by the same jurisdiction for the same purpose, but not in a case where one tax is imposed by the State and the other by the city or municipality." Link to comment Share on other sites More sharing options...
tomato can Posted June 23, 2012 Share Posted June 23, 2012 I know kids can be ****ty...and I know they were, even back in the "good old days"... but just in case you have forgotten...not for the faint of heart: http://www.huffingtonpost.com/2012/06/20/greece-school-district-bullied-footage-causes-outrage_n_1612925.html?1340215853&icid=maing-grid7|main5|dl1|sec1_lnk3%26pLid%3D171675 These are same good kids that some poor under paid teacher has to deal with for 8 hours a day. According to some the teacher being a public sector worker "does not grow the economy " needs to be fired! Link to comment Share on other sites More sharing options...
Chef Jim Posted June 23, 2012 Share Posted June 23, 2012 She has never been doubled taxed. Simple search: "Double taxation, in general, is not forbidden by our fundamental law, since we have not yet adopted as part thereof the injunction against double taxation found in the Constitution of the United States. Double taxation becomes obnoxious only where the taxpayer is taxed twice for the benefit of the same governmental entity or by the same jurisdiction for the same purpose, but not in a case where one tax is imposed by the State and the other by the city or municipality." I'm not saying she's been double taxed you twit. I'm saying the asset would be double taxed if she were to pay income taxes on her gifts. Why should she be taxed on the actions of others. Oh and if the gift was over $13k it would be triple taxed. You cool with triple taxation? If so please provide a good reason. Once again the keyword here is good. Shall I explain what constitutes a good reason seeing your above post is very lacking in the good department of reasoning. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted June 23, 2012 Share Posted June 23, 2012 I'm not saying she's been double taxed you twit. I'm saying the asset would be double taxed if she were to pay income taxes on her gifts. Why should she be taxed on the actions of others. Oh and if the gift was over $13k it would be triple taxed. You cool with triple taxation? If so please provide a good reason. Once again the keyword here I good. Shall I explain what constitutes a good reason seeing your above post is very lacking in the good department of reasoning. Not against the law. Because she is thankful for living in such a great country... That is why. Did I not say that already? That is the ultimate in great reasoning... It is called being THANKFUL and giving back for that thankfulness. Not your petty "somebody does somebody wrong song" whining and crying you do all the time. Agree to disagree, you are tragically flawed... That is something you don't have in you and I expect you to whine and cry about what somebody else is doing to you. Link to comment Share on other sites More sharing options...
3rdnlng Posted June 23, 2012 Share Posted June 23, 2012 Not against the law. Because she is thankful for living in such a great country... That is why. Did I not say that already? That is the ultimate in great reasoning... It is called being THANKFUL and giving back for that thankfulness. Not your petty "somebody does somebody wrong song" whining and crying you do all the time. Agree to disagree, you are tragically flawed... That is something you don't have in you and I expect you to whine and cry about what somebody else is doing to you. I want to send the poor lady some money but if Chef is right (and I'll certainly defer to him in this area) I'm not sending her anything if it's going to get taxed and especially if it's going to be triple taxed. I already paid tax on this money. Link to comment Share on other sites More sharing options...
Chef Jim Posted June 23, 2012 Share Posted June 23, 2012 Not against the law. Because she is thankful for living in such a great country... That is why. Did I not say that already? That is the ultimate in great reasoning... It is called being THANKFUL and giving back for that thankfulness. Not your petty "somebody does somebody wrong song" whining and crying you do all the time. Agree to disagree, you are tragically flawed... That is something you don't have in you and I expect you to whine and cry about what somebody else is doing to you. So it should be "oh thank you, thank you kind sirs for this charitable gift. I am so blessed to live in this great country. But I cannot be trusted to do the right thing with theses blessed gifts so I should give 50% of it away to the government for they shall ONLY do what is right with that money. Oh thank you, thank you almighty government for guiding me!" You do realize the government has already taken their fair share of that money? You do realize that is why giftees do not pay taxes on the gifts they have received? What am I saying? Of course you don't. Link to comment Share on other sites More sharing options...
DC Tom Posted June 23, 2012 Share Posted June 23, 2012 So it should be "oh thank you, thank you kind sirs for this charitable gift. I am so blessed to live in this great country. But I cannot be trusted to do the right thing with theses blessed gifts so I should give 50% of it away to the government for they shall ONLY do what is right with that money. Oh thank you, thank you almighty government for guiding me!" You do realize the government has already taken their fair share of that money? You do realize that is why giftees do not pay taxes on the gifts they have received? What am I saying? Of course you don't. What part of WINDFALL TAX do you not understand? Link to comment Share on other sites More sharing options...
Chef Jim Posted June 23, 2012 Share Posted June 23, 2012 What part of WINDFALL TAX do you not understand? Good point, you're right. !@#$ing take it all. Link to comment Share on other sites More sharing options...
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