Abagadro
06-02-2004, 01:01 PM
The other thread brought this to mind:
Everyone can gift to anyone up to $10k a year tax free. You can give 10k to an unlimited amount of people and an unlimited amount of people can give 10k to you. You just can't give more than 10k to any one person without paying the gift tax.
So, the buy-in is never legally transferred to the house, it is just pooled. Then, when the payouts happen, the appropriate number of persons not in the money "gifts" each of their buy-ins to the appropriate person in the money (after that person takes back out his or her buy-in). Everyone files a Form 709 taking the yearly exemption. Ta da! Tax free payouts.
(Okay, this is far-fetched, but THE MAN is getting too much of a rake). /images/graemlins/wink.gif
EDIT: BTW, this should not be taken as tax advise or instructions as to how to cheat the IRS which is never a good idea. It's just a goofy thing I thought of driving in traffic this morning. Hi mister revenue agent!
Everyone can gift to anyone up to $10k a year tax free. You can give 10k to an unlimited amount of people and an unlimited amount of people can give 10k to you. You just can't give more than 10k to any one person without paying the gift tax.
So, the buy-in is never legally transferred to the house, it is just pooled. Then, when the payouts happen, the appropriate number of persons not in the money "gifts" each of their buy-ins to the appropriate person in the money (after that person takes back out his or her buy-in). Everyone files a Form 709 taking the yearly exemption. Ta da! Tax free payouts.
(Okay, this is far-fetched, but THE MAN is getting too much of a rake). /images/graemlins/wink.gif
EDIT: BTW, this should not be taken as tax advise or instructions as to how to cheat the IRS which is never a good idea. It's just a goofy thing I thought of driving in traffic this morning. Hi mister revenue agent!