wrongful-death settlement, taxes and trusts

Discussion in 'Taxes and Accounting' started by DannoXYZ, Sep 27, 2019.

  1. Taxes? So you are telling me that a civil suit system where awarded funds are subsequently taxed is not anything one should speak up against and call bullshit? How much more ridiculous can it get?

     
    #31     Sep 27, 2019
  2. Overnight

    Overnight

    It is the forum in which you bring it up. You are soapboxing about an issue you fiercely believe in, in an entirely inappropriate thread.
     
    #32     Sep 27, 2019
    Bum likes this.
  3. Bum

    Bum

    If your Dad pays for the college tuition, is that necessarily a "gift"?
    If he pays for apartment rent, is that a "gift"?

    I don't know, just curious if it's a way around the tax if those payments aren't considered a "gift".
    Might want to find out the definition of a "gift" according to tax laws.
     
    #33     Sep 27, 2019
    DannoXYZ likes this.
  4. Overnight

    Overnight

    Chill pill dude.

     
    #34     Sep 27, 2019
  5. DannoXYZ

    DannoXYZ

    Thank you, I will do that as well as CFP and explore trusts in-depth. :)
     
    #35     Sep 27, 2019
  6. Of course I made an estimate, never claimed otherwise. And this has nothing to do with democracy. Or were people initially consulted to vote for a civil suit system. Or did people decide on untrained jurors who wrongly decided in thousands of cases when someone's life was at stake? Thousands of decisions that you now take as unchangeable were decided without democracy in mind. Guess what, for example the second amendment is called an amendment. It means the constitution was amended at some point. Laws you claim are just there and can't be changed can in fact be changed. But it takes people to inform the cattle class that an inferior status quo does not have to remain so.

    So you accuse me of pulling stuff out of my ass when you make all sorts of claims about my company? You never posted an image of your work setup. Not one of your claimed educational credentials. Yet everywhere you boast what an awesome entrepreneur you are. And then you pull stuff out of your own ass about others being in business or not. I smell hypocrisy.



     
    #36     Sep 27, 2019
  7. Overnight

    Overnight

     
    #37     Sep 27, 2019
  8. DannoXYZ

    DannoXYZ

    That's another good idea! He would have to adopt her as his own kid in order to count her tuition on his taxes. Then when she turns 18, it's no longer deductible.

    At some point, she needs to learn to manage her own money. Buying her own cars, houses, etc. Just trying to make my brother's money go as far as possible.

    Looked into Dynasty Trust, but it's restrictive to descendants.
     
    #38     Sep 27, 2019
  9. Bum

    Bum

    Directly from IRS website, college tuition not taxed.
    https://www.irs.gov/businesses/smal...ed/frequently-asked-questions-on-gift-taxes#2
    Taxes.png
     
    #39     Sep 27, 2019
    DannoXYZ likes this.
  10. Thank you for asking, in fact I already answered some of your questions:

    1) I would ask the state/government to hold them accountable. Beyond that I would forgive. My family, me included, have forgiven the doctor who committed malpractice and most likely took away valuable months if not years from my dad. The doctor lost his license to practice for good reason, he performed poorly and did not take his job seriously enough. That is enough. I bet the person who ran a red light has done jail time. All other things are forgivable and can be managed by the family just as we have done.

    2) see 1)

    Your point Re taxes is moot. If the law sees the annual payments for the daughter as a gross payment then taxes are rightly due, just as your deceased brother had to pay income taxes before making payments to his daughter. If the law decides those are net payments then they should not be taxed. Everything else is bullshit and you should sue the IRS or live in a jurisdiction where reasonable practices are applied. At some point humans need to decide, do they pay their fair dues or do they cheat and try to always game the system as much as possible. If the payment was meant to be a payment that the daughter was to receive net then it should never be taxed. What does the legal decision state?

     
    Last edited: Sep 27, 2019
    #40     Sep 27, 2019