141–150 of 344 posts
Earlier quoted context omitted.
Why the heck private gifts are taxable and it is tolerated?
Private gifts are not taxed until it is over $12 million dollars (the estate tax limit). The IRS does require you to report it if it goes over $16k from one individual to another . This is solely to keep track of that $12M lifetime gift limit. Totally reasonable IMO unless you don't believe in inheritance taxes at all. so you could do $48k from a couple to their child and child's spouse.
I've always heard the best way to get rid of someone from your life is to loan them money. People who owe you money make themselves scarce.
This is rarely ever the case. If you "loan" someone money once they will just keep coming back and asking for more. Even worse, they will tell people and you will get the reputation of someone who is generous with money, and soon everyone will be asking you for some.
My father taught me early on that lending a friend $20 was one of the cheapest ways to find out what kind of a friend you were actually dealing with. It's a valuable lesson, for sure.
I loan money to people and never expect to be repaid. If someone asks for $2k I give them $5k. $400 give them $1k. Sometimes I get paid back. Usually not. It’s because people are aware I have money so various people ask. The goal isn’t to get paid back. Often these acquaintances cut off all contact. The goal is to never be asked for money again and slowly bled out by frequent sob stories. If they know they are alread…
Why would you pay so much just for them not to annoy you? That seems a very high price for some peace and quiet. I would just cut off contact with those people. I don't really get this much because I'm not rich, but if people ask me for loans just to get money out of me I will be the one breaking off contact. On the other hand I have a friend of mine who has loaned money and never paid me back, but she is always in a…
Sure, money or anything can be used as a test to determine someone's character. But you can do so without putting money on the line and save yourself some headache.
One way to determine someone's character is to spend time with them, listen to what they say about themselves and others, and whether or not their claims about themselves line up with their actions across time.
Maybe money is "cheaper" and "faster" than this route, but... Guess that's just been my go-to method to determine whether or not someone has integrity, is trustworthy, and has a sense of responsibility, parity, and respect for self and others.
Giving money without expecting it in return, or even being clear about expecting to be paid back, is more about having gauged people's characters & motivations, even when I get it wrong or things don't pan out as agreed-upon.
Earlier quoted context omitted.
Why the heck private gifts are taxable and it is tolerated?
Because if they weren't, I'd gift my work to my employer and they'd gift me money to live on. And there would be a similar exchange of gifts with customers and suppliers, rather than purchases and subscriptions. The paperwork only starts when you gift one person more than $16k (2022 value) in one year, which is quite a large gift and the lifetime estate tax exemption is also very high (currently $12M), so even if you…
Earlier quoted context omitted.
In the US, gifts of up to $11M or maybe $12M are not taxable.
You're off by a bit. It's 17,000. https://www.irs.gov/faqs/interest-dividends-other-types-of-i...
https://en.wikipedia.org/wiki/Gift_tax_in_the_United_States
> Second, gifts in excess of the annual exclusion may still be tax-free up to the lifetime estate basic exclusion amount ($11.58 million for 2020).[9] For estates over that amount, however, such gifts might result in an increase in estate taxes. Taxpayers that expect to have a taxable estate may sometimes prefer to pay gift taxes as they occur, rather than saving them up as part of the estate.
Earlier quoted context omitted.
Why the heck private gifts are taxable and it is tolerated?
Because if they weren't, I'd gift my work to my employer and they'd gift me money to live on. And there would be a similar exchange of gifts with customers and suppliers, rather than purchases and subscriptions. The paperwork only starts when you gift one person more than $16k (2022 value) in one year, which is quite a large gift and the lifetime estate tax exemption is also very high (currently $12M), so even if you…
But I understand the rest. I simply did not know that the rules are very reasonable. Myself I am in Canada not the US.
I loaned a close college friend $7000 last year. Due to life circumstances and lack of family resources, he was stuck in a rural area with no developer jobs. He was having trouble landing a remote job and I ignorantly asked why he wasn’t applying to in-person jobs on the west coast. He told me that he certainly wouldn’t be able to afford to move and I told him “don’t let that stop you”. Fronting him moving expenses w…
The risk of them not being able to pay you back and thus destroying the friendship is so high that I wouldn’t recommend this unless you are ok with losing that person as a friend OR you just give them the money without expectation of it being paid back.
It's on the borrower to worry about paying me back. Me, I don't care.