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Posted: 9/4/2002 9:39:09 AM EDT
I need a little legal advise on the following... Lets say out of the goodness of my heart I wanna help out my neighbor and pay off his mortage...is that legal? If a stranger gave me 20,000 to pay off my house is that legal? The funds will come from a variety of strangers that wanted to do something like this. Now it gets deeper.... If more strangers wanted to donate funds to pay off 10 more peoples houses is that legal? .............................................. Now banks are gonna lose lots of interest. Can they stop or can/will the gov make up a law that this type of activity is illegal? And yes, I have a plan. Rick
Link Posted: 9/4/2002 9:43:39 AM EDT
You can pay off my house. [:)]
Link Posted: 9/4/2002 9:55:06 AM EDT
Anybody got any info on this gift tax thing? I will need to add that to my plan. Always a tax somewhere it seems no matter what we do. Thanks
Link Posted: 9/4/2002 9:58:14 AM EDT
federal gifting limit is 10,000 per year per individual before gift taxes kick in individual states may have their own limits.
Link Posted: 9/4/2002 10:04:30 AM EDT
And the receiver pays the tax, not the giver...
Link Posted: 9/4/2002 10:16:28 AM EDT
Originally Posted By DScott: And the receiver pays the tax, not the giver...
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Lets expand the giving part..... I have 2000 strangers willing to give 10.00 to a single person to pay his/her mortage off. Where would we stand on the tax issue now?
Link Posted: 9/4/2002 10:19:26 AM EDT
[Last Edit: 9/4/2002 10:28:29 AM EDT by DriftPunch]
$11,000 would be tax free, the rest would be taxable... It appears to have gone up by $1,000.
Link Posted: 9/4/2002 10:30:53 AM EDT
I didn't know that. And with the IRS, as usual, it makes little sense. What is the status of this income to the receiver? Is it in any way taxable? BTW, it looks like the annual gift limit is now $11,000...
Link Posted: 9/4/2002 11:26:09 AM EDT
Link Posted: 9/4/2002 11:34:55 AM EDT
Originally Posted By Paul: $10,000 from eash person, per year, no taxable - as I understand.
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Alright, a way around the gift tax. Any other hurdles? Rick
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