To stay or not to stay ---That is the question.

For instance, I knew a trial attorney who did so fine a job
that his firm gave him a $10,000 bonus, above his ordinary remuneration.
I am confident that the IRS deems that ordinary income, taxed as such.
If his employer was so happy with his achievements that he paid
that attorney 's income tax on the bonus, the IRS woud deem
the tax payment as additional ordinary income which is subject
to taxation and if employer re-imbursed attorney for such additional taxation
this woud go on in a cycle ad infinitum.
U agree with that ?

I'm surprised again that you show such little knowledge about basic stuff.

The principle is: no taxes on taxes.

On the other hand,
if I encounter a stranger passing in the street
and give him $1,000, 000 then I owe a gift tax and the stranger owes nothing, in my opinion.
He did not earn the income.
I believe that is not taxable income, as distinct from the aforesaid attorney 's bonus.

Beliefs unfounded..

It's the same thing, that stranger owes taxes on is income, not you.

Remember that you paid already your taxes on your earning this money, you so liberally give.

David wrote:

For instance, I knew a trial attorney who did so fine a jobthat his firm gave him a $10,000 bonus, above his ordinary remuneration. I am confident that the IRS deems that ordinary income, taxed as such. If his employer was so happy with his achievements that he paid that attorney 's income tax on the bonus, the IRS woud deem the tax payment as additional ordinary income which is subject to taxation and if employer re-imbursed attorney for such additional taxation this woud go on in a cycle ad infinitum.
U agree with that ?

I'm surprised again that you show such little knowledge about basic stuff.

The principle is: no taxes on taxes.

and wrote:

On the other hand, if I encounter a stranger passing in the street and give him $1,000, 000 then I owe a gift tax and the stranger owes nothing, in my opinion. He did not earn the income. I believe that is not taxable income, as distinct from the aforesaid attorney 's bonus.

Beliefs unfounded..

It's the same thing, that stranger owes taxes on is income, not you.

Remember that you paid already your taxes on your earning this money, you so liberally give.

and somehow it felt wrong- should I be ignored for laughing at that?

Francis wrote:

David wrote:

For instance, I knew a trial attorney who did so fine a jobthat his firm gave him a $10,000 bonus, above his ordinary remuneration. I am confident that the IRS deems that ordinary income, taxed as such. If his employer was so happy with his achievements that he paid that attorney 's income tax on the bonus, the IRS woud deem the tax payment as additional ordinary income which is subject to taxation and if employer re-imbursed attorney for such additional taxation this woud go on in a cycle ad infinitum.
U agree with that ?

I'm surprised again that you show such little knowledge about basic stuff.

The principle is: no taxes on taxes.

and wrote:

On the other hand, if I encounter a stranger passing in the street and give him $1,000, 000 then I owe a gift tax and the stranger owes nothing, in my opinion. He did not earn the income. I believe that is not taxable income, as distinct from the aforesaid attorney 's bonus.

Beliefs unfounded..

It's the same thing, that stranger owes taxes on is income, not you.

Remember that you paid already your taxes on your earning this money, you so liberally give.

Whenever I have tax questions, I ask the Taxgirl ... she says:

"Gifts of cash are not taxable to the recipient for federal income tax purposes. So, when your mom writes you a check for $10,000, you don’t have to do a thing except tell her thank you."

In this case she seems to think David is correct.

The TurboTax folks seem to agree with her:

"If you give people a lot of money or property, you might have to pay a federal gift tax. But most gifts are not subject to the gift tax. For instance, you can give up to the annual exclusion amount ($12,000 in 2008 and $13,000 in 2009) to any number of people every year, without facing any gift taxes. Recipients never owe income tax on the gifts."

Jesus! Why didn't I think of this before? Now that I have myself on 'ignore' I can say anything I want and then just ignore it.

Or they do the much more common post where they simply call the other poster names and behave like insolent children on a pre-school playground.

maporsche wrote:

Or they do the much more common post where they simply call the other poster names and behave like insolent children on a pre-school playground.

said the sphincter-boy as he tried desperately to extract his head from his own anal cavity.

Some of these guys have such thin skins, it's ridiculous. Makes you wonder how they interact with other guys in their real lives.

Cycloptichorn wrote:

Some of these guys have such thin skins, it's ridiculous. Makes you wonder how they interact with other guys in their real lives.

I can only speak for myself, but I don't tend to call people names or act like an child on a playground. I tend to be professional, courteous, and polite. Just like my momma taught me.

In this case she seems to think David is correct.

I don't recall any ladies being called trolls.

The soggy left males are male chauvinist pigs to the marrow of their bones and they think a few easy-to-do formulaic words hide the fact.
The equal opportunities agenda of the soggy left stops short at that point. It's as patronising as opening doors for ladies. Male chauvinist piggery with smarm.

Tico wrote:

In this case she seems to think David is correct.

Verisimilitude is not truth, Tico.

You just cited one of the exceptions of the general rule.

However, I don't want to clog this thread with fiscal stuff.

I'd be pleased if those who think they are exempted from gift tax, open a thread about this topic...