MOASS has happened, you’re cashing in your tendies, and now you wanna gift your parents or friend some money. Uncle Sam sees this though and says if you want to share with one person, you now have to share with the whole classroom. What the fuck we doing boys.
So from my understanding, you have to report any gift above $15,000 in 1 year to the IRS and our life time exemption for gift taxes is $11.7 million. Say you ??? like a boss and decide you wanna give your parents 1 shares worth of money at the whopping price of $69,420,000. All of a sudden Uncle Sam is bending you over with a 40% tax on your gift and the IRS wants to know your location. (Not to mention 37% in short term capital gains tax or 20% long term)
If you held short term and decided to gift the money, your $69,420,000 just turned to $26,240,760.
How we getting around this???
So here’s what’s excluded from gift tax, according to the IRS:
-Gifts less than $15,000
-Tuition or medical expenses paid directly to an institution
-Gifts to your spouse
-Gifts to a political organization or organizations deemed exempt by the IRS
-Gifts to a 529 college savings plans in which the contribution (up to $75,000 if you’re single or $150,000 if you’re married) is front-loaded and spread over five years.
Now Idk about you boys, but apart from keeping all your tendies to yourself there’s only one option here that makes sense to me…
We have our parents or friends create a political organization. BOOM.
A lobbyist group with clear political goals is defined as an organization. It’s simple, we have them lobby for better gift tax laws and we funnel our gifts through the organization. Tendies are now secure./s
In all honesty though, what are some of your plans and ideas on how to gift money to close ones without being taxed out the ass?
In reply to some of these comments, the political part was a joke, there are much more efficient ways to go about this.
Multiple people have mentioned opening a trust fund or starting a charity. Both are good options, but marrying your parents is clearly the superior choice.
Also thanks for all the awards!