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Post by heidini on Apr 29, 2018 17:08:24 GMT -5
Sorry if this is been talked about before. So Forrest “gives” title to the gold? So is gives a gift? I just looked up 2017 tax guidelines. Forrest has a lifetime cap of $5.49 million before he would have to pay a gift tax. The receiver would not have to pay anything? Can someone else make sense of this? It almost sounds too good to be true. This is the website I am using as a reference: blog.taxact.com/gift-tax-do-i-have-to-pay-gift-tax-when-someone-gives-me-money/ |
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Post by Jenny on Apr 30, 2018 8:36:00 GMT -5
My question is something similar.... if you find a 'gold nugget' while walking, do you claim its value and pay tax? (obviously not if you say nothing)...
Wouldn't it be a similar situation?
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Post by goldwatch on Apr 30, 2018 11:32:58 GMT -5
Is this a gift, or abandoned property? The rules change depending on which it is.
From what I know (and don't take this as gospel), if it's a gift, then the receiver doesn't owe any taxes at that time.
But if they sell it, they have to pay capital gains taxes. Here's where it gets more complicated.
If the giver gives the receiver the documentation for what they paid for it, I think the receiver only pays capital gains taxes on the amount over that, the gain. But if the giver doesn't, then the receiver has to pay capital gains taxes on the entire amount (because they lack the documentation for the original purchase).
Now, if you sell that "row bracelet" back to FF for the $6,000 he's offered, you'll have to pay taxes accordingly for your gain, just on that one sale.
Here's a good one related to that.
Suppose FF paid $50,000 for that bracelet, and gives you the documentation for that purchase. Now when you sell it back to FF for $6,000, you have a capital loss of $54,000, And you can sell other items in the trove and reduce your taxes owed by that amount. But only for the current year, unless there are "carry over" rules you can use.
But we know that he won that bracelet in a pool game, so that won't apply. It's just something I threw in to show how it works, at least to my knowledge.
Best to talk to FF and your own accountant that you'll be able to afford, as the winner of the chase.
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Post by voxpops on Apr 30, 2018 11:34:03 GMT -5
I'm no tax expert, but I don't think you owe anything from such a gift or find unless you make a profit from its disposal. Eventually, the taxman will want his pound of flesh, whether it's from capital gains or income generated. As for Forrest, I'm sure he took professional advice to minimize any burden on his estate.
Btw, I think that the word "title" in the poem has multiple meanings...
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Post by voxpops on Apr 30, 2018 11:36:06 GMT -5
Sorry, goldwatch, your post arrived just before my reply. I agree with your more detailed answer.
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Post by mikemarcum879 on Apr 30, 2018 11:48:38 GMT -5
Sorry if this is been talked about before. So Forrest “gives” title to the gold? So is gives a gift? I just looked up 2017 tax guidelines. Forrest has a lifetime cap of $5.49 million before he would have to pay a gift tax. The receiver would not have to pay anything? Can someone else make sense of this? It almost sounds too good to be true. This is the website I am using as a reference: blog.taxact.com/gift-tax-do-i-have-to-pay-gift-tax-when-someone-gives-me-money/Yes after the IRS is involved now you have the title to the gold. |
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Post by heidini on Apr 30, 2018 12:48:47 GMT -5
Is this a gift, or abandoned property? The rules change depending on which it is. From what I know (and don't take this as gospel), if it's a gift, then the receiver doesn't owe any taxes at that time. But if they sell it, they have to pay capital gains taxes. Here's where it gets more complicated. If the giver gives the receiver the documentation for what they paid for it, I think the receiver only pays capital gains taxes on the amount over that, the gain. But if the giver doesn't, then the receiver has to pay capital gains taxes on the entire amount (because they lack the documentation for the original purchase). Now, if you sell that "row bracelet" back to FF for the $6,000 he's offered, you'll have to pay taxes accordingly for your gain, just on that one sale. Here's a good one related to that. Suppose FF paid $50,000 for that bracelet, and gives you the documentation for that purchase. Now when you sell it back to FF for $6,000, you have a capital loss of $54,000, And you can sell other items in the trove and reduce your taxes owed by that amount. But only for the current year, unless there are "carry over" rules you can use. But we know that he won that bracelet in a pool game, so that won't apply. It's just something I threw in to show how it works, at least to my knowledge. Best to talk to FF and your own accountant that you'll be able to afford, as the winner of the chase. Is it abandoned property if there is his dna in the chest? |
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Post by mikemarcum879 on Apr 30, 2018 12:51:58 GMT -5
Is this a gift, or abandoned property? The rules change depending on which it is. From what I know (and don't take this as gospel), if it's a gift, then the receiver doesn't owe any taxes at that time. But if they sell it, they have to pay capital gains taxes. Here's where it gets more complicated. If the giver gives the receiver the documentation for what they paid for it, I think the receiver only pays capital gains taxes on the amount over that, the gain. But if the giver doesn't, then the receiver has to pay capital gains taxes on the entire amount (because they lack the documentation for the original purchase). Now, if you sell that "row bracelet" back to FF for the $6,000 he's offered, you'll have to pay taxes accordingly for your gain, just on that one sale. Here's a good one related to that. Suppose FF paid $50,000 for that bracelet, and gives you the documentation for that purchase. Now when you sell it back to FF for $6,000, you have a capital loss of $54,000, And you can sell other items in the trove and reduce your taxes owed by that amount. But only for the current year, unless there are "carry over" rules you can use. But we know that he won that bracelet in a pool game, so that won't apply. It's just something I threw in to show how it works, at least to my knowledge. Best to talk to FF and your own accountant that you'll be able to afford, as the winner of the chase. Is it abandoned property if there is his dna in the chest? No because it's a trove it was left for someone else to find |
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Post by mikemarcum879 on Apr 30, 2018 12:53:04 GMT -5
Is this a gift, or abandoned property? The rules change depending on which it is. From what I know (and don't take this as gospel), if it's a gift, then the receiver doesn't owe any taxes at that time. But if they sell it, they have to pay capital gains taxes. Here's where it gets more complicated. If the giver gives the receiver the documentation for what they paid for it, I think the receiver only pays capital gains taxes on the amount over that, the gain. But if the giver doesn't, then the receiver has to pay capital gains taxes on the entire amount (because they lack the documentation for the original purchase). Now, if you sell that "row bracelet" back to FF for the $6,000 he's offered, you'll have to pay taxes accordingly for your gain, just on that one sale. Here's a good one related to that. Suppose FF paid $50,000 for that bracelet, and gives you the documentation for that purchase. Now when you sell it back to FF for $6,000, you have a capital loss of $54,000, And you can sell other items in the trove and reduce your taxes owed by that amount. But only for the current year, unless there are "carry over" rules you can use. But we know that he won that bracelet in a pool game, so that won't apply. It's just something I threw in to show how it works, at least to my knowledge. Best to talk to FF and your own accountant that you'll be able to afford, as the winner of the chase. Is it abandoned property if there is his dna in the chest? No because it's a trove it was left for someone else to find |
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Post by heidini on Apr 30, 2018 12:56:12 GMT -5
So confusing!! If only this “problem” wasn’t hypothetical!!!😂
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Post by heidini on Apr 30, 2018 12:59:15 GMT -5
Is it abandoned property if there is his dna in the chest? No because it's a trove it was left for someone else to find But it’s like a circular contract- in TTOTC, he says he wants the bracelet back. The finder would be performing a service? |
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Post by goldwatch on Apr 30, 2018 16:45:06 GMT -5
No because it's a trove it was left for someone else to find But it’s like a circular contract- in TTOTC, he says he wants the bracelet back. The finder would be performing a service? Well, a service would be income, right? |
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Post by heidini on Apr 30, 2018 18:46:28 GMT -5
But it’s like a circular contract- in TTOTC, he says he wants the bracelet back. The finder would be performing a service? Well, a service would be income, right? If a wallet was returned and owners rewards the returner with a $100... isn’t that a service? But the $100 was a gift. I don’t know...🧐 |
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Post by Deleted on Apr 30, 2018 22:09:08 GMT -5
Very interesting thread.
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