Community Chat

[missy1]

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@JAXS Mom wrote:

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@missy1 wrote:

How does it work when you give people money (a lot)? Pay off their mortgage etc.. Are they taxed too?

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You have to pay the gift tax on the money you gave away. 

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So then you are taxed twice?

[Karnerblue]

Anything I dang well please, and then some!!!!

[jaxs mom]

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@missy1 wrote:

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@JAXS Mom wrote:

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@missy1 wrote:

How does it work when you give people money (a lot)? Pay off their mortgage etc.. Are they taxed too?

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You have to pay the gift tax on the money you gave away. 

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So then you are taxed twice?

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We're already taxed numerous times on the same money. The gift tax started because the government didn't want you to be able to give away your money before you died and then they can't collect their inheritance tax. 

[Plaid Pants2]

Gift tax rules from the irs website:

https://https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-o...

[Mumof2]

I believe you are correct and I am almost certain Pennsylvania is the same way.  I sure wouldn't want many to know!!!!

[nun ya]

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@Lipstickdiva wrote:

Move.  I'd move to an area where I had lots of land and could open a sanctuary for dogs. 

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Ditto!! It breaks my heart to see daily all the pets who have no home or nobody to care for them.

[gmkb]

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@bonnielu wrote:

Payoff my mortgage and my car.  Then I would basically be free and clear.  The rest I would first make sure my kids are 'endowed' or taken care of.  Then charity or charites.  As for me, I would just go to more square dance festivals across the country.. mostly travel I guess.  

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bonnielu, when we lived in Ct. and square danced, fellow dancers won $6,000,000.  

They bought a new car, kept dancing, and changed very little about their life.  We have since lost touch, so I don't know about them anymore.

[colliegirls]

I would buy a huge house right on the ocean!!  After that I would give a million to each of my children, then to the humane society, give a few relatives some money, invest the rest. Done!!

[Plaid Pants2]

I wouldn't give any relatives any money.

I know that sounds cold, but let me explain why.

Say I give some winnings to three people in my family.

The rest of the family would become jealous, and say, "Why them and not me?!? It's not like you can't afford it!!!"

Talk about causing a family rift!

Money does strange things to people.

I mean, just look at how people become vultures when someon dies!

[jaxs mom]

I'd give some to my sister and my mom, but that's it.