I haven’t done much digging, but isn’t this all easily washed away if the loan was forgiven as a gift from a friend?
I think you only get one tax free gift from someone and it is limited to like 100k or something, so there is still going to be some tax liability there.
I think then the lender would be subject to a gift tax.
No, gifts are generally not taxable to the recipient.
Yes, this is probably it. The gift tax is ignorable for 99% of the population because of the annual and lifetime exemptions, but when you’re talking about the people who are gifting SCOTUS judges RVs and season tickets and international vacations, you’re talking about exactly the 1% who are very careful to structure their finances to minimize gift tax issues.
As close to “because reasons” as you’ll get
I’m not sure where I heard that but it appears that if I give you money I have to pay taxes on anything over $18,000 in 2024. I think you would still need to report the gift as income but you shouldn’t be taxed on it. Almost makes me question my plan on hitting the lottery and giving all my friends money. What an accounting pita.
You are free to give a gift under $18,000 a year to multiple recipients without any consequences to anyone (giver or receivers). That’s the annual exclusion. If you give a gift greater than that, you (the giver) will have to pay a gift tax (the receiver will not) EXCEPT that the first ~$13 million (lifetime) is exempt. I like this description:
The lifetime gift tax exclusion is the amount of money you can give away during your lifetime before the gift tax kicks in. It is an additional exclusion amount that’s added to the annual gift tax exclusion. So if you give away more than the annual limit in one year to a single person, the lifetime gift tax exclusion will kick in. Think of these like buckets: If you fill up your annual gift tax exclusion bucket, the excess gift amounts will spill over into your lifetime gift tax exclusion bucket.
In 2023, the lifetime gift tax exclusion is $12.92 million per person, or $25.84 million per married couple. So for example, if you give $60,000 to a single person in 2023, the $43,000 that’s above your annual exclusion amount would be applied to your lifetime exclusion.
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Cause otherwise people would have to sell the family farm or something.
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If you are a millionaire sure. Most people won’t have to pay taxes on anything.
I wasn’t aware of that lifetime exemption. That seems like a crazy high amount.
So if they never wanted to give another gift, someone could give me $12.92M + $18,000 right now and neither of us would have to pay taxes? Whoa. BRB, going to find a sugar mama
I think the lifetime exemption is that amount because that’s how much you can leave to your heirs before you are subject to federal estate tax. But if you use it all during your life, you don’t have any more deduction when you die.
ETA: you can gift unlimited money to your spouse without triggering a gift tax
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At Justice Alito’s House, a ‘Stop the Steal’ Symbol on Display
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Googled Alito’s wife out of curiosity.
It would be a good story if she couldn’t get that guy to finish her portrait. Like Isabella D’Este, who hounded da Vinci for years to complete the portrait he promised (which he may or may not have, but it was never delivered afaik).
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https://x.com/daveweigel/status/1791495903376716150
His explanation of why he ( or his wife) did it doesn’t make sense. You get so upset you hang your flag upside down?
Tbf, I’m also considering a Fuck Trump sign.
“The liberals made me be an asshole” is a standard conservative excuse.
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If I were cynical I’d say the “I was bullied into doing it” is working backwards to come up with a reason other than the real one, that Alito (or his wife) supported the coup
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