Ideas for Improving America
"Transferring"... what "transferring" is is PAYING....
Tue Nov 20, 2012 4:19pm

If one indivdual "transfers" wealth to another indivdiual that is INCOME for the other indivdual, who must pay taxes on it... AFTER the first indiviual payed taxes on it in the FIRST PLACE...

Dad recieves 100K... He pays his 10% on that INCOME.... he now has 90K... He "transferrs" 50K to his son...

Now, his son has 50K in INCOME, and must pay HIS 10% on it...

Actually it is a way to DISSUADE indivduals from "transferring" income around.

  • Wrong.David F Mayer, Tue Nov 20 1:28pm
    The point is that, by transferring income producing assets to some minor, a new taxpayer and corresponding new personal exemption is created. Hence tax liability is reduced. The ONLY way that tax can ... more
    • "Transferring"... what "transferring" is is PAYING.... — Sprout, Tue Nov 20 4:19pm
      • Not so. Transfers occur all the timeDavid F Mayer, Tue Nov 20 5:29pm
        in the same family, to a trust fund, etc, etc. I have never heard of them being called income, although that would be in the spirit of my flat rate tax. This is an interesting matter that requires... more
        • Every transaction is a "transfer"....Sprout, Sun Dec 9 9:23am
          Folks just USE that word to AVOID it sounding like they are paying... If I "transfer" twenty dollars to you, you have been paid twenty dollars. It doen'st matter WHY. Now, it is possible that you... more
          • True, but this is constantly used to evade taxes.David F Mayer, Sun Dec 9 1:40pm
            The new tax code must consider ALL transfers as income, which is certainly NOT true at present. David F Mayer
            • scratch with none of the existing loopholes... If someone gives you money it is income... I think some extremely limited exceptions might be in order such as a person under the age of 16 can recieve... more
              • What happens is that Mr X signs a contract with Y.David F Mayer, Wed Dec 12 1:44pm
                Y is required to pay, NOT Mr X, but Mr X's wife, son, daughter, dog, etc. Sure, it is taxable income, but such subterfuges permit the income and consequent tax to be spread to several individuals. Mr ... more
                • And when the audit comes in....Sprout, Thu Dec 13 11:33am
                  And because it WILL when an 8 yr old claims 20K in income without being legally able to work, it will be amply clear that that money is actually compensation for Mr. X's job, and Mr X will then be... more
Click here to receive daily updates
Tell your friends about this board