any accountants out there that i can ask a question?

[ben89]

You only get gift tax after gifting like 5 mm.
By that time you will hire a team of tax accountants to help you get around it

lol thanks to all. Just making sure that I have no issues.

[EJB]

lol thanks to all. Just making sure that I have no issues.

Is that true?

[Blazer]

Gift tax is on the payor of the gift. The recipient pays zilch

Yes you don't have a tax issue till your relative gives 5 million, but he will still have to file a form for that every year. It can be done easier, you relative can gift you 14k, and your wife 14K, with no gift tax ramifications, (if your relative has a spouse then they can double it ). This is per year. So if you relative has a spouse, they can give you 56K for 2017 and another 56K for 2018, and this wont require any forms.

[precise]

Yes you don't have a tax issue till your relative gives 5 million, but he will still have to file a form for that every year. It can be done easier, you relative can gift you 14k, and your wife 14K, with no gift tax ramifications, (if your relative has a spouse then they can double it ). This is per year. So if you relative has a spouse, they can give you 56K for 2017 and another 56K for 2018, and this wont require any forms.

Question was re the recipient. To my knowledge regardless of the gift amount recipient files nothing. Am I wrong?

[Blazer]

Question was re the recipient. To my knowledge regardless of the gift amount recipient files nothing. Am I wrong?

Yes you are correct, the recipient never had to file or pay.

[aygart]

Question was re the recipient. To my knowledge regardless of the gift amount recipient files nothing. Am I wrong?

The recipient files nothing but may end up holding the hot potato if they are part of the relative's estate and the required return was not filed.

[precise]

The recipient files nothing but may end up holding the hot potato if they are part of the relative's estate and the required return was not filed.

Not sure there is a way out of this. At least he also got a hot piece of steak!

[aygart]

I think they can loan money and forgive the limit each year until it goes away

[precise]

I think they can loan money and forgive the limit each year until it goes away

Assuming the required return wasn't filed what exactly is better in this scenario?

[aygart]

Assuming the required return wasn't filed what exactly is better in this scenario?

not familiar enough, but I would recommend getting a personalized answer.

[AtallD]

I think they can loan money and forgive the limit each year until it goes away

This is not simple. There are many factors that need to be present for this to hold up with the IRS.
See this legal case - http://www.leagle.com/decision/1996174571ctcm1674_11743/MILLER%20v.%20COMMISSIONER
notice the 9 points at the end.

[Sam Finkelstein]

Courts only view a loan as a loan if you can demonstrate that you want it back. With family, it's even tougher to do it.

[joeberg]

I think they can loan money and forgive the limit each year until it goes away

Most banks will require a gift letter if this is part of the down payment.

[aygart]

This is not simple. There are many factors that need to be present for this to hold up with the IRS.
See this legal case - http://www.leagle.com/decision/1996174571ctcm1674_11743/MILLER%20v.%20COMMISSIONER
notice the 9 points at the end.

Courts only view a loan as a loan if you can demonstrate that you want it back. With family, it's even tougher to do it.

The real answer to all of these questions is this.

not familiar enough, but I would recommend getting a personalized answer.

With the best route being consultation with an estate attorney. If the projected estate value is below $5m then it may not be necessary, but if it is mor ethen it is worthwhile either way.

[henche]

This is not simple. There are many factors that need to be present for this to hold up with the IRS.
See this legal case - http://www.leagle.com/decision/1996174571ctcm1674_11743/MILLER%20v.%20COMMISSIONER
notice the 9 points at the end.

This is a mistake frum people make. They assume that secular law works like halacha, and that if you can figure out how to meet the technical requirements in the statute then you are good.  It doesn't work that way.

[AtallD]

This is a mistake frum people make. They assume that secular law works like halacha, and that if you can figure out how to meet the technical requirements in the statute then you are good.  It doesn't work that way.

I wasn't in any way indicating that if he follows this article, he is good to go. I was simply trying to point out that this is way more complex than merely issuing a loan a forgiving it in installments.

[henche]

I wasn't in any way indicating that if he follows this article, he is good to go. I was simply trying to point out that this is way more complex than merely issuing a loan a forgiving it in installments.

I was supporting you, sorry for confusion. 

[AtallD]

I was supporting you, sorry for confusion. 

appreciated.

[aygart]

This is a mistake frum people make. They assume that secular law works like halacha, and that if you can figure out how to meet the technical requirements in the statute then you are good.  It doesn't work that way.

+1 but there is value in getting ideas to disuss with a pro.

[churnbabychurn]

This is a mistake frum people make. They assume that secular law works like halacha, and that if you can figure out how to meet the technical requirements in the statute then you are good.  It doesn't work that way.

Profound