5 ms·
It's not that big. It's $14,000 per person per year.
by adestefan 13y ago
It's not that big. It's $14,000 per person per year.
- dclowd9901 13y agoI'm trying to think of a way to "test" this, like set up a couple of accounts and programmatically transfer money back and forth. I imagine most banks/processors have some sort of mechanism to limit transactions that would be considered suspect (such as automated back-and-forth transfers). But the lower limit's not a problem -- by repeating the transaction, you'd be contributing to the limit of $/year, even with a miniscule amount.
- marme 13y agoThe bank doesnt report you. It is up to you to report yourself as receiving a gift. The entire US tax system works on self reporting and the fact that during audits if you have wilfully lied you will go to jail. So you can transfer some amount a million time and then just say you transferred it once and the IRS will probably never even look into it.
- carbocation 13y agoThe bank will mandatorily report the transaction if it is $10k or greater (or a series of transactions constructed to fall under the $10k limit).
- kjackson2012 13y agoThe first $5M is exempt.
- saalweachter 13y agoYou are thinking of the inheritance tax. If I recall the gift tax and the inheritance tax interact, but you only pay the inheritance tax once, when you are dead.
- namdnay 13y agoMinor quibble: Inheritance tax is paid by the beneficiaries, not the deceased.
- saalweachter 13y ago36% of single filers in the US make less than $14000 per year.
- wmil 13y agoBut it's not strongly enforced. Actually it'd be very interesting if it was. A lot of 20-somethings in New York get more than that from their families. Enforcement could put an end to many unpaid intern jobs.