timestamped There are specialist for that sort of questions in here*, usually they provide credible links & etc.
Incorrect. And I never talked about income taxation. Why do you introduce it here? I can give a house to someone and pay zero gift tax as long as my accumulated gift amount lies under the 11.4m. Even way above the annual threshold. I need to file a Form if I lie above the annual threshold but as long as my accumulated gift is below 11.4m I do not need to pay a gift tax. It's clearly described in the updated tax code.
Guys don't fight FrankinLA on this one, he is correct. You guys are just using google (he says he is too but I don't believe him) lol. Just because you google something doesn't make it correct.
It's not about fighting its just about basic reading and comprehension skills. At least I feel the tax code describes it very clearly.
If he sent the money to a person(family or not) overseas in a country or province that is NOT considered part the USA then the gift giver will NOT be taxed. He can also forget about getting a deduction; if he tries to get one by making a deliberately false deduct. entry on his taxes the IRS will go after him...
Dude, are you an effing millennial? Doesn't anybody effing read anymore? ------------ OP asks about an income tax deduction. @schizo correctly states (1) no income tax deduction, and (2) it's a gift tax issue (and understandably doesn't spend time giving details). You replied with a very funny post saying in essence, wtf, if it ain't to a charity, there's no income tax deduction. (btw I "liked" that post when it appeared.) BUT THEN in a separate post, you incorrectly called @schizo incorrect, but you did provide a bit more information.....but not enough, imo. @schizo clarified the difference between the lifetime exemption and the annual exclusion. You dug in. I then stated that your statement was incomplete, because if the OP doesn't file a gift tax return (because he didn't "structure" his gift giving), he could get caught and pay penalties. You now call me Incorrect, even though you then acknowledge the OP needs to "file a Form if I lie above the annual threshold". That's exactly what I said. Basically, I'm NOT incorrect, and you're agreeing with me. --------- People like you ruined usenet newsgroups in the 90's, and if you don't stop throwing "Incorrect" all over the place, you certainly won't be helping the usefulness of places like ET. But you haven't read this far, so I need to stop.
You claimed that in any given year a gift above 15k would be taxed a gift tax. That is incorrect. Simple as that. If I give away a house worth 600k and my accumulated gifting lies below 11.4m I won't be taxed any gift tax for that house. Which part do you disagree with? And if pls provide a link to the tax code that supports your statement. I read the tax code and was exposed to it personally and hence know that I read.
90% of the time the IRS will NOT go after money sent overseas, especially since IRS has no jurisdiction overseas to gather foreign bank info on the money transfer. Im telling you what a family member's husband has told me. He runs an asset mgmt/estate planning firm out of manhattan NY catering to very high net worth clients. Only if the foreign transfer is over $100k will the IRS "even consider" investigating.... (he also told me this). A one time transfer of $40k to a foreign bank to a family member?..then IRS won't even lift an eyebrow. Now if it were multiple payments to a person or entity who is NOT listed as a family member or foreign business which he has NO affiliation to, thats a different story.