4 ms·

To me, using Gift implies his father wrote it off on taxes as part of his lifetime gift exemption ($12.06 million). It just means SBF gave $10M to his father an

by welder 4y ago

To me, using Gift implies his father wrote it off on taxes as part of his lifetime gift exemption ($12.06 million). It just means SBF gave $10M to his father and his father didn't have to pay taxes on that money because he reported it as a gift. It doesn't add much to the story though. Edit: Thanks to comments below I found out the sender pays the tax if over $12.06M not the receiver of the gift.

seren 4y ago
Just a random bit of information but I am clearly astonished by the amount of the American gift exemption ! In France, as far as I know, it is $150k€ every 10 years to your children only. Edit : above it has to be integrated to your income tax IIRC, paid by the receiver only.
- ianferrel 4y ago
  It's tied to the estate tax exclusion. The first ~$12million of estate isn't taxed, and you can give that money away before or after you die.
loeg 4y ago
The gift exemption is for the giver, not the recipient of a gift. Recipients don't pay gift taxes in the US; givers do.
- s1artibartfast 4y ago
  This is not quite correct. If you receive a large cash gift you may be subject to income tax on that money. This is a separate issue from The Gift Giver claiming a deduction on their taxes. The gift tax is a transfer tax, and my understanding is that it could be paid in theory by either party. Most people don't want to pay income tax or a windfall tax on the gift so it makes more sense for the Giver to pay the transfer tax https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
  - loeg 4y ago
    The IRS link you provided supports what I said. > The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. The lifetime exemption on gifts and annual exemption on gifts are thresholds for the giver; not the recipient of the gift. > If you receive a large cash gift you may be subject to income tax on that money. This is more or less not true? Other than the (very weird) situation of agreeing to pay the gift tax, as the recipient you generally do not owe income taxes on the gift. If you were gifted something that generates income (e.g., stock or rental property), you will owe tax on that income after you receive it.
dragonwriter 4y ago
> To me, using Gift implies his father wrote it off on taxes as part of his lifetime gift exemption ($12.06 million). The gift exemption and gift taxes apply to the giver, not the recipient. (The gift and estate tax are effectively one combined tax.)

by welder 4y ago

seren 4y ago

Just a random bit of information but I am clearly astonished by the amount of the American gift exemption ! In France, as far as I know, it is $150k€ every 10 years to your children only. Edit : above it has to be integrated to your income tax IIRC, paid by the receiver only.

ianferrel 4y ago
It's tied to the estate tax exclusion. The first ~$12million of estate isn't taxed, and you can give that money away before or after you die.

loeg 4y ago

The gift exemption is for the giver, not the recipient of a gift. Recipients don't pay gift taxes in the US; givers do.

s1artibartfast 4y ago
This is not quite correct. If you receive a large cash gift you may be subject to income tax on that money. This is a separate issue from The Gift Giver claiming a deduction on their taxes. The gift tax is a transfer tax, and my understanding is that it could be paid in theory by either party. Most people don't want to pay income tax or a windfall tax on the gift so it makes more sense for the Giver to pay the transfer tax https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
- loeg 4y ago
  The IRS link you provided supports what I said. > The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. The lifetime exemption on gifts and annual exemption on gifts are thresholds for the giver; not the recipient of the gift. > If you receive a large cash gift you may be subject to income tax on that money. This is more or less not true? Other than the (very weird) situation of agreeing to pay the gift tax, as the recipient you generally do not owe income taxes on the gift. If you were gifted something that generates income (e.g., stock or rental property), you will owe tax on that income after you receive it.

dragonwriter 4y ago

> To me, using Gift implies his father wrote it off on taxes as part of his lifetime gift exemption ($12.06 million). The gift exemption and gift taxes apply to the giver, not the recipient. (The gift and estate tax are effectively one combined tax.)