Does anyone know how to give 50,000.00 to a friend without them having to pay a gift tax??

*1 oz coins

Buy his salt shaker for $50k cash.

then sell salt shaker for 2 and take a lose of 49998

Give him a personal loan with a promissory note. Make the terms what you want. Do you have to involve the house in it?

You have $50,000 plus taxes and penalties on the line and aren’t willing to pay your CPA for a few minutes of their time to get the correct answer that is legal and correct.

Okey dokey.

Tax guy here (EA). The gift of $50K to pay off the current mortgage, then forgiving $16K a year over four years isn’t a bad idea. The IRS could challenge this, as it may appear as not a bona-fide loan; disguised gift.

I think the safest approach is to make it a Gift, the entire $50K. Report the Gift, minus $16K (32K if the brother is married). If you are married and your brother is married, you and your wife can elect to split the Gift. Splitting the Gift will allow you and your wife to gift $12,500 from each of you to each of them and neither you nor your wife would use your Lifetime Exclusion, but, you and your wife would be required to report the Gift on a Form 709.

If neither you nor your brother are married, you’d use up $34,000 ($50,000 - $16,000) of your Lifetime Exclusion, big deal. You’d have another $12M to use up if the crazy Dems don’t reduce this in future years.

Or, slow play it and gift him $16K a year to put chunks down on the mortgage. No Gift Tax Return to file, but also no immediate result.

Just my two cents.

If you don’t know the difference between “lean” and “lien”, you have no business loaning money to anyone.

Very enlightening thread, impressive.

Yes me too, It is a little like helping someone out by giving them a place to stay free... they will abuse it like hell and then twist it in their sick mind to being a house share forgetting they pay nothing and are a guest.

Did you pay taxes on that 50 grand already?


You should not be taxed or should I say double taxed for money you already pay tax on despite who you give it to or what you spent it on.

But here we are.

Open a checking account and put both your names on it.

Buy $50,000 in Amazon gift cards and give to him.

XRP

Buy the CPA lunch under your business, LLC , Foundation etc etc etc... Tax deductible, get sound advice...


There is a way to do this that you get a write off and its tax free for them, my grandfather did it for my parents in something similar ..... I wouldn't go with a lein because if something happens and you forget to re-up the lein, you could miss out. (If i'm not mistaken some states leins have to be updated every so often)

Loan him $50,000. Have him sign for it at a low but believable rate. Each year check what the tax free gift amount is and give him that much forgiveness on the loan.

If you want the forgiveness documented you can trade checks with him for the documented gift and payoff each year.

The first year you can just give the gift separate from the loan and reduce the loan amount if you like.

Quit claim.


You will have to buy a house or some property first.

You can loan him the money. Loans are not considered income. If he pays it back or not is up to you. If you expect to have him pay it back, make sure that you have rock solid paperwork.

Even then, the agreement is only as good as the honor of the person standing behind it.

Good Luck.

Your friend was never your friend...

"You are not my friend my friend"-Salladhor Saan GoTh