Help Yi Buy a Car

[Admiral Yi]

Yi, I don't think that is correct, I think no one will pay any taxes ever. Unless your mom is loaded or you fuck up somehow.

Are you basing that conclusion on stuff linked and posted here, or something else?

[alfred russel]

Yi, I don't think that is correct, I think no one will pay any taxes ever. Unless your mom is loaded or you fuck up somehow.

Are you basing that conclusion on stuff linked and posted here, or something else?

My accounting education. Keep in mind I don't do tax, and failed the tax section of the CPA exam twice before passing it by the skin of my teeth (really only failed once, the second time I knew I was going to fail so didn't show up).

[MadImmortalMan]

Mom will have to pay capital gains on selling the shares. 

[sbr]

Jesus people it's not that hard.  First everything in the opening post of that reddit thread is correct.

You can give/receive $14,000 a year and no one cares.  A married couple can give $28,000 if it is shared money.  A spouse can also receive another $28,000, so a married couple can give any other married couple $56,000 a year with no strings or questions.

If you go above the yearly limit the giver has to report it to the IRS, not as income but a gift.  This then comes out of your lifetime limit of $5.45 million (again doubled if joint property of a married couple, so mom and dad could give a kid $28k per year and then an additional $10.9 million without anyone ever paying any taxes on it.)  If it goes over that then the donor pays the taxes, though if they didn't for some reason the receiver could be liable.

As of Sept 2016 the only states with gift taxes were Connecticut and Minnesota.

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

http://blog.taxact.com/gift-tax-do-i-have-to-pay-gift-tax-when-someone-gives-me-money/

If my (and The Dark One's) reading is correct, the recipient has to pay income tax on any gift above $14K.  That contradicts the language of the reddit post.

You and the Dark One are mistsken.  Did you look at the link to the IRS site I gave?

Giver is responsible for paying any gift tax, and it is only paid after the giver has given more than 14k in a year and more then 5.45 million in a lifetime.

I am not an accountant but my parents paid for most of my daughter's college and we spent a lot of time looking into gift tax laws.  I am 99.9% sure I an providing correct info.

[Admiral Yi]

Mom will have to pay capital gains on selling the shares. 

That's another question I have.  If we wait til she dies, does the estate have to pay cap gains?

Fredo, do me a solid and ask a tax wonk you work with these questions please.

[Admiral Yi]

You and the Dark One are mistsken.  Did you look at the link to the IRS site I gave?

Giver is responsible for paying any gift tax, and it is only paid after the giver has given more than 14k in a year and more then 5.45 million in a lifetime.

I am not an accountant but my parents paid for most of my daughter's college and we spent a lot of time looking into gift tax laws.  I am 99.9% sure I an providing correct info.

I get that about the gift tax.  I'm asking about income tax.

[sbr]

You and the Dark One are mistsken.  Did you look at the link to the IRS site I gave?

Giver is responsible for paying any gift tax, and it is only paid after the giver has given more than 14k in a year and more then 5.45 million in a lifetime.

I am not an accountant but my parents paid for most of my daughter's college and we spent a lot of time looking into gift tax laws.  I am 99.9% sure I an providing correct info.

I get that about the gift tax.  I'm asking about income tax.

I'm struggling with the IRS site on my phone but here is something from the creators of TurboTax.

Gifts are neither taxable or deductible on your tax return.   Any gift to an individual that exceeds $14,000 in a year requires a separate gift tax return to be filed (form 709) by the giver - the receiver of the gift does not report anything.  It will not be immediately taxable, but will reduce your lifetime exclusion.

https://ttlc.intuit.com/questions/2542778-if-i-receive-a-gift-of-say-50-000-from-a-friend-and-i-give-that-person-a-gift-12-24-months-later-can-that-person-claim-my-gift-on-his-taxes-and-not-have-to-pay-income-on-that-money-assume-neither-of-us-is-near-our-gift-limit

[Admiral Yi]

Thanks sbr.  Looks like youse guys were right, Dark One and I wrong.

[sbr]

No worries. I was pretty sure I knew what I was talking about but didn't communicate it very well.

[KRonn]

All of my cars have been 4x4 or all wheel drive. I used to hunt and fish a lot or just go off roading. Now I still buy those type cars to get around in winter but it's probably over kill since I try not to drive in snowy weather. But before retiring I liked those for getting to/from work in bad weather.

As for a jeep wrangler, I don't know if it's a good highway car so it depends on what you want it for. I would think it's built for off road more so than highway ease and comfort. Gas mileage is a consideration also for any car. I don't think wranglers get good mileage from what checking I did.

[Admiral Yi]

Test drove the 2 door manual Sport today.

The 2 door is a bad joke.  With front seats at full tilt you've got about 4 inches to crawl into the back seat.  I honestly don't think it's physically possible to get back there. Trunk is about six inches deep.

My mad clutch skilz have atrophied.  Will be paying out for the auto tran.

I got a card from a young punk salesman, he has my number.  Now I play the waiting game to see if he calls me with an opening bid on price reduction.

[katmai]

Sorry lost track at what you are looking to buy?

[Admiral Yi]

Sorry lost track at what you are looking to buy?

Un coche

[MadBurgerMaker]

Test drove the 2 door manual Sport today.

The 2 door is a bad joke.  With front seats at full tilt you've got about 4 inches to crawl into the back seat.  I honestly don't think it's physically possible to get back there. Trunk is about six inches deep.

My mad clutch skilz have atrophied.  Will be paying out for the auto tran.

I got a card from a young punk salesman, he has my number.  Now I play the waiting game to see if he calls me with an opening bid on price reduction.

The back seat is only supposed to be used as a nice garage decoration after you bring the vehicle home for the first time.

[Admiral Yi]

The back seat is only supposed to be used as a nice garage decoration after you bring the vehicle home for the first time.

Is it detachable?