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#11
05-08-2005, 05:51 PM
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Re: Account in sibling\'s name
The income is taxable to your sibling.
The only way it can get double counted is if the amount is greater than $11K and neither of you is married ($22K limit then) and you transfer all of it to yourself then your sibiling is on the hook for the gift tax. If you have had tuition or medical expenses those amounts are not included in the gift tax calc (be careful with this). Best adivse = have your sibling pay taxes on this and then transfer $11K a year to you until he/she has enough to cover the additional taxes they paid. Please do not belive that Neteller = income. 
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#12
05-08-2005, 09:14 PM
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Re: Account in sibling\'s name
"Please do not belive that Neteller = income."
I'm not quite sure what you mean by this. Please explain. Are you saying that balkii's neteller advice wouldn't work? Because my thought had been to create a joint checking account with my sibling, neteller the money into it, then just write a check into my own regular account. That way, for neteller purposes, the money would be going to my sibling, but for tax purposes the money would be coming to me. Is this plan somehow flawed?
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#13
05-09-2005, 10:17 AM
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Re: Account in sibling\'s name
It does not matter how the money hits neteller, the income was earned by an account set up by your sibling, thus it is income to him/her. I realize that many can argue that the IRS can not get offshore pokerroom records, but if you are moving large sums of money from offshore accounts (like Neteller) just know that is a red flag.
Also while I'm not sure about this, if your sibling is in a higher tax bracket than you there could be possiable tax evasion questions. Your question was not about getting the $$ in your pocket it was about not double counting the taxes. Anyway someone else asked a question about this a while ago (search gnomes and taxes).
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#14
05-09-2005, 12:27 PM
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Re: Account in sibling\'s name
I realize that my question was about double counting of taxes, but as I assumed (wrongly perhaps) that the money was beyond the reach of the IRS until it hit an American checking account, I thought the joint checking account solved this problem.
And technically, the income was earned by an account set up by me in my sibling's name, and was always in fact income to me. Perhaps I am guilty of perpetrating a fraud on some island somewhere, but I don't think that is relevant to my U.S. tax status.
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