THE GIFT
TAX
Since this is all about giving, I know I have heard about something called the Gift Tax.
So I went to the U.S.Government website to get answers to my questions
about gift taxes. (Check it out yourself)
[ I wondered who paid the gift tax. The
site said: ]
WHO PAYS THE GIFT TAX?
The donor is generally responsible for paying the gift tax.
[ I wondered what the definition of a gift was.
The site said: ]
WHAT IS CONSIDERED A GIFT?
Any transfer to an individual, either directly or indirectly, where full
consideration (measured in money or money's worth) is not received in
return.
[ Then I read about the exclusions from the gift tax.
The site said: ]
WHAT CAN BE EXCLUDED FROM GIFTS?
The general rule is that any gift is a taxable gift. However, there
are many exceptions to this rule. Generally, the following gifts are not
taxable gifts.
1. Gifts that are not more than the annual
exclusion for the calendar year.
2. Tuition or medical expenses you pay
for someone.
3. Gifts to your
spouse.
4. Gifts to a political organization for its
use.
[ So I wondered, what is the definition of the annual exclusion? FAQ's on the site said: How many
annual exclusions are available?]
The annual exclusion applies to each donee........ $13,000 on or after January 1, 2010, the annual
exclusion applies to each gift.
~~~~~~
If a husband and wife want to give what they own
together the gift tax applies to each of them - meaning that they could each
give $13,000 to someone with no taxes being applied
What
this means is rich couples, like congressmen and their
wives, can pay their child's tuition, AND give them $26,000 a year
to spend and it is all tax free. You think they are going to
change that law when they can give their kids a huge, tax free, start
in life? No, they aren't going to change it. So what are
you going to do? Are you going to complain about the rich some
more or are you going to take advantage of the same law and get some
tax free money of your own? Any money I decide to give you would
be tax free.
That is why I can't promise or guarantee I
will ever give you a cent. If I promised that would be considered an agreement and not a gift and
it would take away my right as a private citizen to give away my money however I want. What you give me
HAS to be a gift. What I give you HAS to be a gift. I
have said I would like to give as many people as possible $500.00 a month
to help them pay their bills. I would like to, but I can't promise it.
I can't guarantee it.
I have told you that I
struggle to pay my bills. That is the truth. If you decide to send me a
check, the reason has to be that it is a gift. A gift is a gift. Whatever
reason you make a gift, the receiver can use it any way he wants. Be assured, I will
use at least part of your gift to pay my bills.
How would this affect your finances and the economy?