|
#2
06-02-2006, 04:39 AM
| |||
| |||
 Re: Money from parents for work? mkappel17[at]gmail.com wrote: - quote - > Hey all, looking to save some money on taxes:
Do you mean "can your parents GIVE it to you?"> My parents and I recently bought a property, fixed it up and > sold it for profit. The time frame of holding was short > term. Being this was our first property we did not set up a > corp first, so we are aware of the taxes we will have to > pay. There was a verbal agreement entered that the 3 of us > would split the profits evenly. For simple terms, lets say > we sold the house for 25k more then we bought it for with > 10k in costs....leaving 15k profit. > What i am wondering is the best way for us to move this > money between us? Can my parents gift it to me and neither > of us pay taxes? Any and all thoughts are much appreciated. (Give is the verb and gift is a noun.) Anyway, merely giving money does not negate the tax consequences. You have the gist of it however, with 15k profit, each of you pay taxes on 5k. ChEAr$, Harlan Lunsford, EA n LA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
|
#1
04-07-2006, 05:59 AM
| |||
| |||
| Re: Money from parents for work? You have what is called a "defacto partnership". Most state legal codes have two treatments- (1) gains split evenly among partners or (2) gains split pro-rated per investor contribution (if you can document such). See your state law for details. A written contract is always recommended for these kind of arrangments to cover something that goes wrong. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
|
04-07-2006, 05:59 AM
| |||
| |||
| Re: Money from parents for work? <mkappel17[at]gmail.com> wrote: - quote - > Hey all, looking to save some money on taxes:
Cash, check or money order.> My parents and I recently bought a property, fixed it up and > sold it for profit. The time frame of holding was short > term. Being this was our first property we did not set up a > corp first, so we are aware of the taxes we will have to > pay. There was a verbal agreement entered that the 3 of us > would split the profits evenly. For simple terms, lets say > we sold the house for 25k more then we bought it for with > 10k in costs....leaving 15k profit. > What i am wondering is the best way for us to move this > money between us? - quote - > Can my parents gift it to me and neither
No.> of us pay taxes? -- Phil Marti Clarksburg, MD << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
|
#-1
04-06-2006, 04:27 AM
| |||
| |||
| Money from parents for work? Hey all, looking to save some money on taxes: My parents and I recently bought a property, fixed it up and sold it for profit. The time frame of holding was short term. Being this was our first property we did not set up a corp first, so we are aware of the taxes we will have to pay. There was a verbal agreement entered that the 3 of us would split the profits evenly. For simple terms, lets say we sold the house for 25k more then we bought it for with 10k in costs....leaving 15k profit. What i am wondering is the best way for us to move this money between us? Can my parents gift it to me and neither of us pay taxes? Any and all thoughts are much appreciated. Thank you Mike << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| money, parents, work |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Parents medical SMF: Parents lived with taxpayer for six months in 2005. They have only SS income of $11,000. They do not qualify as dependents because of this income... | Taxes | 5 | 02-02-2006 12:45 PM | |
| Tax on Gift from Parents? DaveR: Our parents gave us money as a gift. Am I required to pay tax on this gift? If so under what circumstances would I not be liable for such... | Taxes | 9 | 10-02-2005 11:50 AM | |
| Parents Overseas JD: I am a US Citizen. My parents are NOT. They both live overseas. I support them 100% for all of their expenses. Can I claim them as dependents ?? ... | Taxes | 9 | 01-28-2004 05:07 PM | |
| Mortgage from parents tweety: I am new to lot of this financial/tax stuff. I am looking to purchase a home and which, my dad will be living with me. He has enough cash to... | Taxes | 4 | 01-09-2004 04:14 AM | |
| Mortgage from parents tweety: I am looking to purchase a new home for $550K. I have 20% downpayment. My parents have suggested to buy the house Cash so that I don't have to... | Taxes | 19 | 08-03-2003 11:21 PM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
