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The *recipient* of a gift is never required to pay any taxes on said gift. Bill Gates could walk up to you and write you a check for $100,000,000 and you would not owe any taxes on the money. The *giver* has to worry about the tax implications
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This is soooooooo wrong.
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Repeating...no, it is not. Unless you take umbridge with the word "never" which is still correct since the recipient is not required to enter into an agreement where they pay the taxes instead of the donor. (Though they might not get the gift if they don't.)
See
http://tinyurl.com/9yqsk and note question number 2.
Q: Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
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My guess is that he thought it was wrong since you used an absurd example of Bill Gates handing you $100 million then stating that it is all tax free for you, yet the gift tax only applies to $11,00 per person per year like the rest of your link shows.
Q: How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002, 2003 or 2004, the annual exclusion applies to each gift.
This seems like a pretty major oversight on your part to me. Remember if you are going to post a link to show you are correct you should at least read the link in the first place.
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Oh my. Re-read everything in that link. Everything. Now take a few minutes and think through the words you are reading with no pre-conceived notions.
Here is what you will find...
1. The *receiver* is not responsible for taxes on a gift. (Unless the giver and receiver agree to set things up that way ahead of time -- an exception I clearly noted in an earlier post.)
2. The size of the gift does not matter in terms of whether or not the *receiver* is responsible for the taxes.
3. The *donor* has to worry about the taxes.
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My guess is that he thought it was wrong since you used an absurd example of Bill Gates handing you $100 million then stating that it is all tax free for you,
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It is tax free to ME. It is taxable for Bill Gates. This is exactly what I have been saying all along. I find it truly amazing that anyone could read the link I provided and come up with your incorrect interpretation...
Remeber, if you are going to be a moran, at least pull your head out of your ass first.
Acme