If this is true it may tie in.

[Funky Cold Medinar]

Has anybody heard anything about a recent tax law change, it has to do with the "one time" tax free gift option. I was told that last mid-decmber the one time gift was raised from13K to 30K. If it's true it makes me wonder why they did that, after all, the more "larger" sums of money that are spread out the more it will benefit the economy as a "whole". Makes me wonder, hmmmmm, are they expecting something?

Countless blessings and endless peace to ALL....GO RV!

[Sdr]

Has anybody heard anything about a recent tax law change, it has to do with the "one time" tax free gift option. I was told that last mid-decmber the one time gift was raised from13K to 30K. If it's true it makes me wonder why they did that, after all, the more "larger" sums of money that are spread out the more it will benefit the economy as a "whole". Makes me wonder, hmmmmm, are they expecting something?

Countless blessings and endless peace to ALL....GO RV!

Sorry wrong. Still $13k..........try IRS.gov!

[BJinMontreal]

Has anybody heard anything about a recent tax law change, it has to do with the "one time" tax free gift option. I was told that last mid-decmber the one time gift was raised from13K to 30K. If it's true it makes me wonder why they did that, after all, the more "larger" sums of money that are spread out the more it will benefit the economy as a "whole". Makes me wonder, hmmmmm, are they expecting something?

Countless blessings and endless peace to ALL....GO RV!

Link ??

Maybe here: http://hubpages.com/hub/IRS-Gift-Tax-Limit

Though it doesn't mention an increase, just that if you are married the limit is $26,000 - Here's the text:

IRS Gift Tax Limit for 2010, 2011

IRS Gift Tax Limit Information

If you are someone who regularly gives away large amounts of money or property, then it is important for you to be familiar with the IRS gift tax limits. The gift tax limits are set in place by the IRS, so your gifts are taxable only above a certain amount.

Currently the IRS will allow you to give away up to $13,000.00 annually without having to pay any tax on the gift. This $13,000.00 can be given to one person or any number of people. If you are married, then this amount increases to $26,000.00.

One important thing to remember is that the recipients of your gift will never have to pay any tax on the gift. If the giver of the gift goes above the IRS gift tax limit amount, the giver will pay the gift tax on the gift.

How Much Can I Give In a Lifetime?

You are allowed to give up to one million dollars in gifts above the annual limit in your lifetime without having to pay taxes. This means you need to plan carefully to ensure you do not exceed your annual limit as well as your lifetime limit.

Why Is There an IRS Gift Tax?

The gift tax was imposed to prevent taxpayers from giving away everything they own before they die to avoid paying estate tax. If you do go beyond the gift tax limit, then you could be taxed as high as 45%. So be careful with the amounts you are giving away.

We suggest using an online tax preparation service such as TurboTax Online that will help you calculate the amount you have given away and if you owe any tax on those gifts. You can visit the web site of TurboTax and click on the support tab to gain access to their award winning library of tax information. Once you're on the support page, you can enter, IRS gift tax limit, and you will have answers to any questions you may have.

[Funky Cold Medinar]

Thank you, I'm glad I asked, i will be researching it more. i appreciate your time.

Countless blessings and endless peace to ALL....GO RV! so I can start giving it away!

[breault]

Hey, I actually know the answer to this one as I just experienced it. The law is 13,000 per year as a gift.

Here's something I'm wondering about though. Let's say I gave you a pretty rock that was pretty much worthless, it was just really pretty (Dinar). One day that rock breaks and you find inside a beautiful diamond worth a millions bucks. Okay, so what's the deal with that? Should you be taxed on a gift that really had no value??? I might not be explaining it correctly, but I'm sure you get my meaning. I'm kind of wondering if you gift Dinar to people, which isn't worth all that much now, and then it RVs and it is worth something, well you know.....

[billio0]

Good question, Breault.

I believe the answer would be that from the standpoint of the value of the gift "as a rock," it is only worth a small amount or next to nothing. This amount is subtracted from you annual gift limit of $13,000 US Dollars, and you may give as many of these rocks away as gifts up to the amount of the $13,000 limit. In fact, you may even give more than the limit, but every gift "rock" over that amount is taxable to the recipient.

As each of these "rocks" somehow miraculously happens to have a gorgeous diamond inside it worth many millions of US Dollars, the new owner of the "rock, and now diamond" must pay the taxes on whatever amount it is sold for or cashing in, meaning the conversion to US Dollars. As long as the rocks and diamonds remain in their original state, they continue to hold the initial value when given by you. The moment they become US Dollars worth more than their value when you gave it to them, the taxing begins.

Hope I explained this correctly.

[Funky Cold Medinar]

Hey, I actually know the answer to this one as I just experienced it. The law is 13,000 per year as a gift.

Here's something I'm wondering about though. Let's say I gave you a pretty rock that was pretty much worthless, it was just really pretty (Dinar). One day that rock breaks and you find inside a beautiful diamond worth a millions bucks. Okay, so what's the deal with that? Should you be taxed on a gift that really had no value??? I might not be explaining it correctly, but I'm sure you get my meaning. I'm kind of wondering if you gift Dinar to people, which isn't worth all that much now, and then it RVs and it is worth something, well you know.....

EXCELLENT QUESTION! lOOking forward to reading the responses.

Countless blessings and endless peace to ALL....GO RV!

[breault]

Okay, so I'm trying to wrap my mind around this.... Your answer makes sense, in a way. If you "gift" something that has no value (or nearly no value), and you have no idea it will be worth something one day, basically you are just giving away something of no value. Okay, so it then becomes worth something, so tax wise the holder of the now valuable item then is responsible for the taxes?? Or, maybe, just maybe......awww, forget it, I'm still trying to figure this one out!!! Thanks so much for your response, definitely something to think about!

I was kind of hoping there was a little hitch in the giddyup, so to speak, somewhere in this gifting process, dang!!

[AmyM]

This is the reason that you consistently hear on these forums to generate gift letters and have then notarized Before the RV. This way the value of your gift is minimal, and whomever you give it to has to be respondible for the taxes.

[MDTrvmyD!]

Good question, Breault.

I believe the answer would be that from the standpoint of the value of the gift "as a rock," it is only worth a small amount or next to nothing. This amount is subtracted from you annual gift limit of $13,000 US Dollars, and you may give as many of these rocks away as gifts up to the amount of the $13,000 limit. In fact, you may even give more than the limit, but every gift "rock" over that amount is taxable to the recipient.

As each of these "rocks" somehow miraculously happens to have a gorgeous diamond inside it worth many millions of US Dollars, the new owner of the "rock, and now diamond" must pay the taxes on whatever amount it is sold for or cashing in, meaning the conversion to US Dollars. As long as the rocks and diamonds remain in their original state, they continue to hold the initial value when given by you. The moment they become US Dollars worth more than their value when you gave it to them, the taxing begins.

Hope I explained this correctly.

this may be a stupid question so forgive me, but is it possible to convert the dinar to gold and not pay taxes, because i didn't convert it to USD?

[Marquess]

Hey, I actually know the answer to this one as I just experienced it. The law is 13,000 per year as a gift.

Here's something I'm wondering about though. Let's say I gave you a pretty rock that was pretty much worthless, it was just really pretty (Dinar). One day that rock breaks and you find inside a beautiful diamond worth a millions bucks. Okay, so what's the deal with that? Should you be taxed on a gift that really had no value??? I might not be explaining it correctly, but I'm sure you get my meaning. I'm kind of wondering if you gift Dinar to people, which isn't worth all that much now, and then it RVs and it is worth something, well you know.....

I think I actually found this info on this site. You can gift the dinar prior to RV by filling out a gift letter. I did this with my brother in law. We both signed it. We also were told to put in the letter the exact amount gifted and that the dinar was for "collecting purposes". Hope this helps.

[breault]

I'm not positive about it, but my understanding was that you are trading one type of currency for another, no tax until that gold bar is "cashed in". I could totally be wrong about that, but I thought I heard someone mention that.

[Marquess]

Go to the Tax Discussion forum on this site. It has a thread pinned that has a sample gift letter in it.

[KramerDinar]

The amount still holds at $13K. $26 K if you are married because both yourself and spouse would have the ability to gift $13K each to the same person, so if you are trying to spread the wealth and eliminate some taxes, $26K to each of your friends for Christmas is a good option. The only thing I am not clear on is the person gifting would avoid taxes on that money but imagine the person receiving the money will be taxed, otherwise people could gift to their friends to avoid taxes only to receive the money back. Consider if it was tax free, you could play round-robin with friends.

5 friends giving to each other:

1 -> 2

1 -> 3

1 -> 4

1 -> 5

2 -> 1

2 -> 2

You get the picture, so imagine somewhere taxes are playing a role or would be a easy work around to avoid them.

[breault]

"Round Robin" sounds like an exceptionally fun game.........I'm in!

[Tubbs]

Hey, I actually know the answer to this one as I just experienced it. The law is 13,000 per year as a gift.

Here's something I'm wondering about though. Let's say I gave you a pretty rock that was pretty much worthless, it was just really pretty (Dinar). One day that rock breaks and you find inside a beautiful diamond worth a millions bucks. Okay, so what's the deal with that? Should you be taxed on a gift that really had no value??? I might not be explaining it correctly, but I'm sure you get my meaning. I'm kind of wondering if you gift Dinar to people, which isn't worth all that much now, and then it RVs and it is worth something, well you know.....

Time to ROCK out my family and friends

[havasumom]

I read somewhere , on here, that a person could give away $100,000 in a lifetime. Does anyone remember the details on that?