Sumner Redstone Gives Women Millions of $

[iacas]

30 minutes ago, tdiii said:

Still no.  As there is no limit. 

And, the IRS is crystal clear -- the donor has the tax liability.  The recipient never does.

Well, the CPA I teach disagrees, and the first result in Google is a Forbes.com article:

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The Internal Revenue Service announced the 2015 estate and gift tax limits today, and the federal estate tax exemption rises to $5.43 million per person, and the annual gift exclusion amount stays at $14,000.

Also, http://blog.taxact.com/gift-tax-do-i-have-to-pay-gift-tax-when-someone-gives-me-money/:

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Does the gift recipient ever have to pay gift tax?

If the donor does not pay the tax, the IRS may collect it from you.

A CPA friend said that if the donor didn't file a Gift Tax Form for gifts over $14k the IRS may consider it income. (They wouldn't know it was a "gift," after all, without a paper identifying it as such.)

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This isn't something I really have to worry about now, though.

[tdiii]

He's wrong.  It is a "limit" only to the extent there is a tax liability if you exceed it.  There is no rule absolutely preventing the gift in excess of that "limit". 

Yes, the IRS "may" consider it income, but that does not make it income.  The donee could show it was a gift. 

 

Edited December 14, 2016 by tdiii

[iacas]

9 minutes ago, tdiii said:

He's wrong.  It is a "limit" only to the extent there is a tax liability if you exceed it.  There is no rule absolutely preventing the gift in excess of that "limit".

I didn't say it was that kind of limit. Obviously you can't really set that kind of limit - a limit on how much money someone can give someone else.

9 minutes ago, tdiii said:

Yes, the IRS "may" consider it income, but that does not make it income. The donee could show it was a gift. 

:sigh: Okay, whatever.

The only thing it seems I got wrong was that the lifetime limit on gifts is in the millions. Currently $5.43 million.

Anyway… I don't really care about this guy or what he gave to some women that looked at him a special way or whatever.