25
   

5 Dollars will do it - even 1 Dollar will !

 
 
Ticomaya
 
  5  
Reply Fri 20 Dec, 2013 08:40 pm
@ossobuco,
ossobuco wrote:
You don't know me at all, Now SheWolf Promoter.

A lot of us liked her for herself and still do.

Nobody is claiming you aren't supporting SW.

I wish I practiced in Texas and could help her more in her endeavor, but I'm happy to hear there is a positive development for her.

As far as her needing to pay tax, I don't practice tax law, but I do not think she needs to report these gifts as income to the IRS (which is an entirely different set of rules than those of "income" limits for food stamps). Maybe Roger has a view on that.
ossobuco
 
  2  
Reply Fri 20 Dec, 2013 08:43 pm
@Ticomaya,
Thanks, that is good to hear. Exceedingly good.
0 Replies
 
jcboy
 
  2  
Reply Fri 20 Dec, 2013 09:06 pm
@Ticomaya,
Ticomaya wrote:

As far as her needing to pay tax, I don't practice tax law, but I do not think she needs to report these gifts as income to the IRS (which is an entirely different set of rules than those of "income" limits for food stamps). Maybe Roger has a view on that.


I could be wrong but I remember one tax attorney telling me you could gift ten grand a year tax-free.
ossobuco
 
  2  
Reply Fri 20 Dec, 2013 09:09 pm
@jcboy,
Tnx.

In my day, it was $500.00.
0 Replies
 
roger
 
  5  
Reply Fri 20 Dec, 2013 09:16 pm
@jcboy,
Gift tax applies to the giver, not the receiver. The recipient is in the clear, though as Tico mentioned, that is for IRS. I can't address food stamps, VA eligibility, etc.

That was a long time ago. The most recent number I recall was something around 13,500.
jcboy
 
  2  
Reply Fri 20 Dec, 2013 09:26 pm
@roger,
Thanks Roger,

I couldn't remember if he told me it was the giver or receiver, I thought he said it was tax free for the receiver, ten grand once a year.
Ticomaya
 
  3  
Reply Fri 20 Dec, 2013 09:40 pm
@jcboy,
jcboy wrote:
I couldn't remember if he told me it was the giver or receiver, I thought he said it was tax free for the receiver, ten grand once a year.

The gift tax exclusion amount has changed over the years. I last studied tax law formally about 20 years ago. (I even got some fancy initials after my name because of my extended tax law studies, but I never practiced in the field.) Back then the exclusion was $10,000 a year. It has increased as time has passed. I believe this year it goes up to $14,000.
0 Replies
 
CalamityJane
 
  1  
Reply Fri 20 Dec, 2013 09:44 pm
In that case, I don't think shewolf needs to worry about paying taxes on the donations. It definitely would fall under "gift tax" and it's not (yet) in the 5 digits Smile
ossobuco
 
  1  
Reply Fri 20 Dec, 2013 09:52 pm
@CalamityJane,
I obviously don't know. Tnx, calamity, re your take.
0 Replies
 
Ticomaya
 
  3  
Reply Fri 20 Dec, 2013 09:55 pm
@CalamityJane,
CalamityJane wrote:
In that case, I don't think shewolf needs to worry about paying taxes on the donations. It definitely would fall under "gift tax" and it's not (yet) in the 5 digits Smile

No, she does not need to worry about that.


[Like roger said, the giver of the gift (the donor) is the one obligated to pay the tax on the gift. "Gift tax" is the concept that if someone is being generous and giving large sums of money, they need to pay the IRS "gift tax" on any amount gifted in any one year that exceeds the annual exclusion amount. So if Daddy Warbucks gifts away $15,000 to someone in 2013, he needs to pay gift tax on $1,000 (the amount he gifted over the exclusion amount). This is to prevent the uber wealthy from giving away their vast sums of money to their beneficiaries without having to pay estate taxes upon their death. They can start gifting up to $14,000 a year to each of their beneficiaries without having to pay any gift taxes.]
ossobuco
 
  1  
Reply Fri 20 Dec, 2013 09:59 pm
@Ticomaya,
So I wasn't an ass for bringing this up?
I'm getting pm flack.
My wish is that Wolfie doesn't later lose by the getting.
Obviously, none of this is my smart realm.
jcboy
 
  2  
Reply Fri 20 Dec, 2013 10:02 pm
@Ticomaya,
That makes sense.

Like Share Print
Frequently Asked Questions on Gift Taxes


Quote:
Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.
What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.
Gifts that are not more than the annual exclusion for the calendar year.
Tuition or medical expenses you pay for someone (the educational and medical exclusions).
Gifts to your spouse.
Gifts to a political organization for its use.
In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.
May I deduct gifts on my income tax return?
Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions). If you are not sure whether the gift tax or the estate tax applies to your situation, refer to Publication 950, Introduction to Estate and Gift Taxes.
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift.
What if my spouse and I want to give away property that we own together?
You are each entitled to the annual exclusion amount on the gift. Together, you can give $22,000 to each donee (2002-2005) or $24,000 (2006-2008), $26,000 (2009-2012) and $28,000 on or after January 1, 2013.
0 Replies
 
Ticomaya
 
  3  
Reply Fri 20 Dec, 2013 10:03 pm
@ossobuco,
ossobuco wrote:
So I wasn't an ass for bringing this up?

Not in my book.
ehBeth
 
  2  
Reply Fri 20 Dec, 2013 10:09 pm
@Ticomaya,
Who is responsible for making sure the requisite taxes are paid?
CalamityJane
 
  2  
Reply Fri 20 Dec, 2013 10:12 pm
@Ticomaya,
Ticomaya wrote:

ossobuco wrote:
So I wasn't an ass for bringing this up?

Not in my book.


Neither in mine, osso!
0 Replies
 
ossobuco
 
  1  
Reply Fri 20 Dec, 2013 10:15 pm
@Ticomaya,
Gracias.
0 Replies
 
Ticomaya
 
  2  
Reply Fri 20 Dec, 2013 10:25 pm
@ehBeth,
ehBeth wrote:
Who is responsible for making sure the requisite taxes are paid?

To which taxes are you referring?

There are no taxes to be paid on the gifts being made to SW, and she does not need to claim the gifts as income to the IRS.
0 Replies
 
Butrflynet
 
  2  
Reply Fri 20 Dec, 2013 10:36 pm
I'm not in a clear enough state of mind to come to any conclusions. Perhaps someone who is can take a look at these pages to see if there is anything applicable for the food stamp issue:

This is general Fed info

http://www.fns.usda.gov/snap/eligibility#Income

And this is specific to Texas

http://www.benefits.gov/benefits/benefit-details/1348

From reading this part, I would say She wolf has nothing to worry about it, but someone needs to confirm I've understood it correctly. She has 3 people in the household.


Quote:
General Program Requirements

In order to qualify for this benefit program, you must be a resident of the state of Texas and fall into one of two groups: (1) those with a current bank balance (savings and checking combined) under $2,001, or (2) those with a current bank balance (savings and checking combined) under $3,001 who share their household with a person or persons age 60 and over, or with a person with a disability (a child, your spouse, a parent, or yourself). For either group, you must also have an annual household income of less than $14,079 if one person lives in the household; $18,941 if two people live in the household; $23,803 if three people live in the household; $28,665 if four people live in the household; $33,527 if five people live in the household; $38,389 if six people live in the household; $43,251 if seven people live in the household; or $48,113 if eight people live in the household. For larger households, add $4,862 for each additional person in the home.
ossobuco
 
  1  
Reply Fri 20 Dec, 2013 10:40 pm
@Butrflynet,
Thank you, butrfly.
0 Replies
 
roger
 
  2  
Reply Fri 20 Dec, 2013 11:49 pm
@Butrflynet,
I didn't see a specific definition of income in either link, but my feeling is that we are talking about a few early Christmas presents. That's my story, and I'm sticking to it.
 

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