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#1
10-24-2004, 12:25 AM
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How I Gave One Million Dollars to a Hooker without TaxesWhat is the name of your state?NY In the interest of showing how screwed up the tax laws are, let me propose a hypothetical situation. I and a hooker buy a $2,000,000 piece of property and get the deed recorded as Tenants in Common. She contributes a buck. After the deed is recorded, we sell the property for 2 mill plus enough of a profit to cover buying costs. The profit/loss is a wash, i.e., zero. The presumption of TIC is 50-50 ownership. So I give the lady her $1,000,000. Her "presumed" basis is 50% of $2,000,000 or $1,000,000. Thus she pays no capital gains of any kind and I pay no gift tax. Where is the fallacy in this scenario? Want an even more plausible scenario? Same property but $1,999,000 mortgage. I pay entire mortgage off with my money. We sell property. Same result. Take the situation one step further. I do this before my death (buying the property). The property is worth $2,000,000. I die. Half the property goes to the hooker. Another case of someone getting a million dollars tax free? |
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#2
10-24-2004, 12:33 AM
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| In the interest of this forum, did you have a legal question? I didn't see one.
__________________ It is our unanimous opinion that you are damn right and it should be obvious to any moron that your (ex) (SO’s ex) (boss) (landlord) (local police) should be immediately (jailed) (fired) (reprimanded) (arrested) (demoted) (shot) (evicted). In fact, you are so astonishingly correct in this matter, it will not surprise us one bit if you are offered a generous settlement, because, by golly, that’s just how it should be. You Rock, Love, Us |
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#3
10-24-2004, 12:45 AM
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| My response: There is no legal question. The writer just likes to write stories about buying property with a hooker who only has a dollar to contribute. It's a pretty sexy story. However, it would have been more plausible if our writer said that the hooker was a crack junky. IAAL |
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#4
10-24-2004, 01:10 AM
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| And don't forget, his point is obviously at the top of his head. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#5
10-24-2004, 10:46 PM
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#6
10-24-2004, 10:50 PM
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| Why don't you try it and find out? Or better yet write them a letter and ask them so they can throw it in the circular file. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#7
10-26-2004, 01:54 AM
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| What makes you think that giving someone $1M cash is a gift but giving someone $1M of equity in a house is not a gift???
__________________ This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post. |
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