4 ms·

> I'd already transferred the maximum yearly tax free gift of $10,000 to each of my kids. If I'm not mistaken, one tip I've heard is that one can transfer more

> I'd already transferred the maximum yearly tax free gift of $10,000 to each of my kids. If I'm not mistaken, one tip I've heard is that one can transfer more than that in gifts yearly, and although that requires filing a gift tax return with the IRS, it doesn't mean necessarily mean paying any tax. There's a lifetime maximum that has to be hit, and it's extremely high. (I'm not a lawyer nor an accountant, and this is not legal or tax advice, yada yada)

someweirdperson 4y ago
> and it's extremely high "Extremely high" is relative (some 11 million, probably less at that time?), considering the person telling this story.
lotsofpulp 4y ago
The nuance is that if you gift below the yearly reporting amount, it does not count towards the lifetime maximum, since it never has to be reported. So if Woz had given $10,001, then he would have had to file it, and then when he died, it would have added $10,001 towards his total lifetime gift tax exclusion from his estate (currently $13M). But if he gave $10k (or whatever yearly reporting maximum) per year until he dies, then all of that does not get counted towards the $13M lifetime gift tax exclusion, so in a way, it is an additional tax reduction when the estate gets passed down.
- lupire 4y ago
  That's (hard to detect) tax fraud.
  - lotsofpulp 4y ago
    No, it is perfectly legal. It is called the annual “exclusion” amount, because you get to exclude it from estate tax calculations. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe... > 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. https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax https://www.irs.gov/businesses/small-businesses-self-employe...
  - rcstank 4y ago
    It’s not fraud at all. It’s following tax laws.
lupire 4y ago
The bit about taxes is nonsense, or else he intentionally substantially overpaid taxes just for a joke. But he's a billionaire so maybe he did.
- ramphastidae 4y ago
  I thought he was a billionaire too but according to my Google searches his net worth is actually closer to $100m.

someweirdperson 4y ago

> and it's extremely high "Extremely high" is relative (some 11 million, probably less at that time?), considering the person telling this story.

lotsofpulp 4y ago

The nuance is that if you gift below the yearly reporting amount, it does not count towards the lifetime maximum, since it never has to be reported. So if Woz had given $10,001, then he would have had to file it, and then when he died, it would have added $10,001 towards his total lifetime gift tax exclusion from his estate (currently $13M). But if he gave $10k (or whatever yearly reporting maximum) per year until he dies, then all of that does not get counted towards the $13M lifetime gift tax exclusion, so in a way, it is an additional tax reduction when the estate gets passed down.

lupire 4y ago
That's (hard to detect) tax fraud.
- lotsofpulp 4y ago
  No, it is perfectly legal. It is called the annual “exclusion” amount, because you get to exclude it from estate tax calculations. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe... > 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. https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax https://www.irs.gov/businesses/small-businesses-self-employe...
- rcstank 4y ago
  It’s not fraud at all. It’s following tax laws.

lupire 4y ago

The bit about taxes is nonsense, or else he intentionally substantially overpaid taxes just for a joke. But he's a billionaire so maybe he did.

ramphastidae 4y ago
I thought he was a billionaire too but according to my Google searches his net worth is actually closer to $100m.