There are a large majority of Americans who do not understand the I.R.S. tax code. Have you ever seen it? I have and let me tell you it is an incredible "piece of work". Not only is it large and intimidating, but it is written in Black's law dictionary jargon the average American has no understanding of. Now I am not here today to inform you on the in's and out's of the I.R.S. tax code although I could, we'll save that for another article.
What I am interested in sharing with you , is gifting. The last upgrade to the tax code regarding gifting ,had reached an alltime high of $12,000.00, USD (that's U. S. Dollars) . The I.R.S. say's you can receive 11,999.99 and do not have to include that in your income statement, therefore not having to declare it, TAX FREE!!. Now the proper way to handle this is to have the" gifter" give you a signed affidavit or "gifting letter" signed by him/her stating it is a gift, and that he was doing it out of his/her own free will.
Another nice tid-bit would be to have a "non-solicitation letter" to go along with that stating that the party was not solicited to grant the gift, and that there was nothing promised in return for the gift, a nice add-on to the rules (C Y B)cover your butt!!
Now as you move forword in life realize that if some one were to gift you it is allowed, I.R.S. sanctioned and perfectly legal, and remember this the money was already taxed once!! can't be taxed again, unless it was $12,000.00 or more,and the best part you do not have to report it. I love this country!!
Hope this article was helpful in clearing up any misconceptions about receiving money from any one, and hopefully some comes your way.
My name is Fred Foley, and I am currently a mortgage banker and have been for 5 years, where gifting is very prominant for real estate deals. I have been a student of the I.R.S. tax code for over 25 years and have been VERY successfull in capitolizing on the gifting laws. my web site, www.cashrush.net has some very interesting angles on cash gifting. This perticular activity has been helping average americans get out of debt, put their kids through college, cover large medical bills, and added comfort to every aspect of peoples lives for over 7 years now, I am thrilled everyday to hear the great testimonies of average people leveraging their gifts to help and be helped by like minded people all over the country!!
