Upgradable Posted December 19, 2010 Report Share Posted December 19, 2010 I have a young, 23 year old, friend who is working her butt off trying to get a foothold into adulthood. I'd like to give her 50k dinar for Christmas. Do I need to do anything special so that she can avoid any unexpected complications that may come with my gift? Link to comment Share on other sites More sharing options...
imjustme0502 Posted December 19, 2010 Report Share Posted December 19, 2010 I heard it's best to give before it Rv's. (tax reasons) Link to comment Share on other sites More sharing options...
Captjohn Posted December 19, 2010 Report Share Posted December 19, 2010 I have a young, 23 year old, friend who is working her butt off trying to get a foothold into adulthood. I'd like to give her 50k dinar for Christmas. Do I need to do anything special so that she can avoid any unexpected complications that may come with my gift? Other than that you are limited to gifting $13,000 to any one person in a given year (not an issue here), there should not be any problems. If you bought and held the dinar for more than one year, the gain would be long-term for her when she would sell the dinar. Your purchase date (and cost basis) becomes hers, essentially. I gifted both of my children dinar which was held for more than one year. When they selll, they have copies of my original purchase documentation proving the date of purchase. What a nice gift......and one that will be truly appreciated. Link to comment Share on other sites More sharing options...
Upgradable Posted December 19, 2010 Author Report Share Posted December 19, 2010 Other than that you are limited to gifting $13,000 to any one person in a given year (not an issue here), there should not be any problems. If you bought and held the dinar for more than one year, the gain would be long-term for her when she would sell the dinar. Your purchase date (and cost basis) becomes hers, essentially. I gifted both of my children dinar which was held for more than one year. When they selll, they have copies of my original purchase documentation proving the date of purchase. What a nice gift......and one that will be truly appreciated. So, if I give it to her now it would be worth MUCH less than the $13k, right? How do I document when I gave it to her? Link to comment Share on other sites More sharing options...
Grandpa Dave Posted December 19, 2010 Report Share Posted December 19, 2010 Hi Wonderwoman, Look up ExecCouncil Site. On one of his posts he designed a gift letter. Print it out , fill it out, and have it notarized before the RV and you should be just fine. 1 Link to comment Share on other sites More sharing options...
debbiek92 Posted December 19, 2010 Report Share Posted December 19, 2010 So do you have to hold it longer than one year or can you give it to them and let them hold it for more than one year in order to get the lower tax rate? I am new and not familiar with ExecCouncil site. Is there a web address or how would I access that? Thanks much Link to comment Share on other sites More sharing options...
Upgradable Posted December 19, 2010 Author Report Share Posted December 19, 2010 Hi Wonderwoman, Look up ExecCouncil Site. On one of his posts he designed a gift letter. Print it out , fill it out, and have it notarized before the RV and you should be just fine. Thanks, Grandpa Dave!!! Merry Christmas! 1 Link to comment Share on other sites More sharing options...
thunderrb Posted December 19, 2010 Report Share Posted December 19, 2010 Give it to her pre-RV, Make sure you give her a Gift letter and have it notarized.. This is a generous Christmas gift, I'm sure she will appreciate your kindness.. Link to comment Share on other sites More sharing options...
Grandpa Dave Posted December 19, 2010 Report Share Posted December 19, 2010 Hi folks. I may have had the name wrong. Its---ExecConsult. Go to the members list and look him up and check out his posts. You should find it. I just had the last of our gifts notarized yesterday so you might want to do this as fast as you can. If you need more help, just holler. Hi folks. I may have had the name wrong. Its---ExecConsult. Go to the members list and look him up and check out his posts. You should find it. I just had the last of our gifts notarized yesterday so you might want to do this as fast as you can. If you need more help, just holler. 1 Link to comment Share on other sites More sharing options...
2DZIRE Posted December 19, 2010 Report Share Posted December 19, 2010 I have a question: What if they dont live anywhere close to you to have them sign the letter?? Thanks for your help Link to comment Share on other sites More sharing options...
Upgradable Posted December 19, 2010 Author Report Share Posted December 19, 2010 Thanks, I've just completed the letter and will take it in to be notorized tomorrow. And 2DZIRE, the recipient doesn't have to sign the letter, just you, the notary, and two witnesses. Hope that helps. Link to comment Share on other sites More sharing options...
Grandpa Dave Posted December 19, 2010 Report Share Posted December 19, 2010 I dont think you need any wittnesses. The notary is just to verify who you are by your identification, and to verify it was you and your signature on the document. We didnt have any wittnesses and there was no problem. 1 Link to comment Share on other sites More sharing options...
prettybaby Posted December 19, 2010 Report Share Posted December 19, 2010 I have a young, 23 year old, friend who is working her butt off trying to get a foothold into adulthood. I'd like to give her 50k dinar for Christmas. Do I need to do anything special so that she can avoid any unexpected complications that may come with my gift? I looked for ExecConsult and could not find a copy of the gift letter. If you were able to locate the gift letter, will you please send it to me. Thanks Link to comment Share on other sites More sharing options...
Upgradable Posted December 19, 2010 Author Report Share Posted December 19, 2010 Here you go PrettyBaby. Link to comment Share on other sites More sharing options...
DaveH Posted December 20, 2010 Report Share Posted December 20, 2010 just give it to who you want, forget about documents, you give it, they cash in and pay the taxes, simple Link to comment Share on other sites More sharing options...
zantac Posted December 20, 2010 Report Share Posted December 20, 2010 I thought you are Wonderwoman. You can run fast, bend iron bars, jump over buildings, make men fall at your feet, moan constantly, ask silly questions. But you cant put out the trash, take the dog for a walk, cut the lawn, tolerate mother in law at Christmas, hear things only when you want & drink alcohol until you cant see but still find your way home at night. Only kidding Just give them the money & kiss them. Regards Steve Austin (Superman) 1 Link to comment Share on other sites More sharing options...
Upgradable Posted December 20, 2010 Author Report Share Posted December 20, 2010 Zantac, isn't Steve Austin the Six Million Dollar Man? Link to comment Share on other sites More sharing options...
Hopeful Leo Posted December 20, 2010 Report Share Posted December 20, 2010 (edited) Just write her a "receipt" that states it was a gift and the date....she'll need it for taxes. Maybe have it notarized. Edited December 20, 2010 by Hopeful Leo Link to comment Share on other sites More sharing options...
hrdbawl Posted December 20, 2010 Report Share Posted December 20, 2010 just give it to who you want, forget about documents, you give it, they cash in and pay the taxes, simple You are dead on davhina. All the other posts are really driving at a true "gifting" scenario that is up and over the $13,000 limit's. Anything less does NOT need to be proven so simple buy a Christmas gift card that you can slip money into and budda bing budda bang, you have gifted, LEGALLY, some money to your friend. Think about it...do you have to do a letter if you gave her $10, $100, $1,000? Nope! You just hand her cash. This is exactly what you are doing here. The key (if it ever came up which is so remote I cannot begin to tell you) is to have her cash in AFTER the RV obviously and all is fine. If you feel better with the letter, so be it. It isn't necessary though. Link to comment Share on other sites More sharing options...
Upgradable Posted December 20, 2010 Author Report Share Posted December 20, 2010 Thanks, Hardball. She knows about dinar, but doesn't have any money to invest. I want her covered, but don't want to freak her out with notarized documents or certificates of authenticity if they're not necessary. I appreciate all the advice. Link to comment Share on other sites More sharing options...
prettybaby Posted December 20, 2010 Report Share Posted December 20, 2010 Here you go PrettyBaby. Thank you Link to comment Share on other sites More sharing options...
carlablum Posted December 20, 2010 Report Share Posted December 20, 2010 My brother in-law won the lottery a couple years ago and he wrote a $12,000 check to his five brothers and sisters. We didn't report it becouse he gave it to us as a gift for Christmas. He was told that anything over 12,000 would be taxable. This was just my personal experience. Link to comment Share on other sites More sharing options...
hrdbawl Posted December 20, 2010 Report Share Posted December 20, 2010 My brother in-law won the lottery a couple years ago and he wrote a $12,000 check to his five brothers and sisters. We didn't report it becouse he gave it to us as a gift for Christmas. He was told that anything over 12,000 would be taxable. This was just my personal experience. Which at that time WAS a gift tax over $12k. Today it is $13k, as we have discussed. When you give more (trivia purposes) than the minimum, there is an implied tax called a "Gifting Tax". This is not cheap (I think it starts at 35%, seek counsel) and taxed to the one giving the gift. They file a form 709 for amounts over $13k in the year 2010 and 2011. Needless to say, there are better ways to give more than the maximum. NOTE: If you gift more than the max and don't file the appropriate documentation, then nothing really happens UNLESS the IRS audits you or the gift recipient for any reason and finds this gift having been given. Than penalties and taxes become the consequence of course. Just some info since it came up in this thread. Hope it helps. Link to comment Share on other sites More sharing options...
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