As soon as you write it off as a tax loss, it becomes unreported income for the recipient - and they get taxed. That is my understanding. I'm not a tax guy.
There was a 10k limit tax free on gifting per person per year, I don't remember if it was only to a family member or to anyone.
So if I never write off the loss. The other person doesn't have to report the income? Seems like a win to me.
Obviously I'd consult a professional before employing this kind of strategy. But I feel these kinds of strategies are what the the elite employ to avoid harsh taxes. This getting a one up on people once you get past a certain wealth point.
So if I never write off the loss. The other person doesn't have to report the income? Seems like a win to me.
If they deposit a large sum in a bank, the bank may report it because of federal regulation requirements.
Car dealers and others may report large cash transactions.
The govt has about every possibility mapped out. Tax consultants can find legal ways to minimize your tax liability.
There was a 10k limit tax free on gifting per person per year,
It was $14k about 5 years ago. I know because I am very fortunate to have parents that set aside money to help me buy my first house and this was the top amount the mortgage people said I could be gifted without it being an issue with tax/credits/etc...
'#justWhitepeoplethings
It was about 15 years ago the last time I checked into this. Glad to see the Max went up.
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