[jeff]

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[Skrier]

@stoleway…… But I thought the recipient of the “gift” is not taxed on the gift. Gift taxes are paid by the person donating or giving the gift not the recipient. So why would the withdrawn funds from a joint bank account that the gifts are sent to be taxed?

If I am understanding the original question the account is set up at a credit union, by whom I am not sure, to cover the medical expenses and living expenses of the 22 year old. So he should be taxed on the donations made to him?

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@stoleway…… But I thought the recipient of the “gift” is not taxed on the gift. Gift taxes are paid by the person donating or giving the gift not the recipient. So why would the withdrawn funds from a joint bank account that the gifts are sent to be taxed?

If I am understanding the original question the account is set up at a credit union, by whom I am not sure, to cover the medical expenses and living expenses of the 22 year old. So he should be taxed on the donations made to him?

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[stoleway]

Skrier…..i didnt say the recipient should be taxed, the GIVER should be taxed once the the recipient withdraws cash from the joint bank account. Hope this makes sense?

Don't confuse joint bank account with trust.

On the second question, if the money is paid out directly to the hospital for medical expenses of the 22yr old, then the entire gift will be exempted from gift tax, but if you're just giving the money directly to the recipient to cover medical expenses then I think you will be liable for gift tax.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Skrier…..i didnt say the recipient should be taxed, the GIVER should be taxed once the the recipient withdraws cash from the joint bank account. Hope this makes sense?

Don't confuse joint bank account with trust.

On the second question, if the money is paid out directly to the hospital for medical expenses of the 22yr old, then the entire gift will be exempted from gift tax, but if you're just giving the money directly to the recipient to cover medical expenses then I think you will be liable for gift tax.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Skrier]

@stoleway……THANK YOU!!! Oh my god…. I was beginning to panic, I thought I had it backwards. This makes much more sense to me. Yes…I agree the person giving the gift would be taxed, but I think the timing of it is that they are taxed at the time of the gift, since they do not have the ability to take it back. I think if the gift is make to the account that was established, then the gift IF greater than $14,000 would be taxable in the year of the gift, even if the funds are not withdrawn for any period of time.

I also agree with, paying the gift directly to the hospital, for the entire gift to be exempt, however I don't think that would be a possible solution for his living expenses.

Thanks so much for clearing that up. I hope we didn't confuse cpaherewego through this 🙂

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@stoleway……THANK YOU!!! Oh my god…. I was beginning to panic, I thought I had it backwards. This makes much more sense to me. Yes…I agree the person giving the gift would be taxed, but I think the timing of it is that they are taxed at the time of the gift, since they do not have the ability to take it back. I think if the gift is make to the account that was established, then the gift IF greater than $14,000 would be taxable in the year of the gift, even if the funds are not withdrawn for any period of time.

I also agree with, paying the gift directly to the hospital, for the entire gift to be exempt, however I don't think that would be a possible solution for his living expenses.

Thanks so much for clearing that up. I hope we didn't confuse cpaherewego through this 🙂

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Anonymous]

Dumb question for the group but I'm hoping someone can calm me down. I am sitting for REG in November (passed BEC and AUD) and I have just finished up the review of the tax section of the Becker review course. A big concern I have is this:

What tax code will be tested. For example in the 2013 becker study guide the limit for a lifetime gift tax is for 13,000 and the unified estate and gift tax credit is $1,772,800 – all number relate to 2012 limitations.

WIll I be tested on 2012 limitations/deductions etc. or 2013 limitations/deductions etc.?

[Anonymous]

Dumb question for the group but I'm hoping someone can calm me down. I am sitting for REG in November (passed BEC and AUD) and I have just finished up the review of the tax section of the Becker review course. A big concern I have is this:

What tax code will be tested. For example in the 2013 becker study guide the limit for a lifetime gift tax is for 13,000 and the unified estate and gift tax credit is $1,772,800 – all number relate to 2012 limitations.

WIll I be tested on 2012 limitations/deductions etc. or 2013 limitations/deductions etc.?

[Skrier]

Abby1005…I am in the same situation. My solution is that I am studying with 2012 limits and rates since that is what is in the Becker Software. I have downloaded from the Becker dashboard the 2013 July tax changes. If you understand the concepts, you can then just replace limits with the 2013 figures. I have made a grid for myself showing the old 2012 versus new 2013, this way I can be sure I know them on testing day. Good Luck to you.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

Abby1005…I am in the same situation. My solution is that I am studying with 2012 limits and rates since that is what is in the Becker Software. I have downloaded from the Becker dashboard the 2013 July tax changes. If you understand the concepts, you can then just replace limits with the 2013 figures. I have made a grid for myself showing the old 2012 versus new 2013, this way I can be sure I know them on testing day. Good Luck to you.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[LSNYC]

I agree its tricky, 2012, 2013 i think as long as you know the major amounts for 2013 you should be fine. I can't say for sure, but usually i think section 179 is the big one to know, i wouldn't worry to much on the exemption amounts, and then tax brackets. I am familiar with them but am not memorizing them.

Quick check in, busy week at work! Hoping to get home earlier enough this week and next to study, but could be hard. Q3 may kill me before REG gets to in Nov!

Happy studying!

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[LSNYC]

I agree its tricky, 2012, 2013 i think as long as you know the major amounts for 2013 you should be fine. I can't say for sure, but usually i think section 179 is the big one to know, i wouldn't worry to much on the exemption amounts, and then tax brackets. I am familiar with them but am not memorizing them.

Quick check in, busy week at work! Hoping to get home earlier enough this week and next to study, but could be hard. Q3 may kill me before REG gets to in Nov!

Happy studying!

A - 61, 91!!
B - 78!
F - 76!!!
R - 71, 73, 74, 69, 77!!!!

Finally done!

This is my 2nd attempt at the exam, I had two parts passed (failed many) and I stupidly quit, big mistake. Now I'm back and with a vengeance!

[Qlad]

i am not able to catch the gain/loss calculation of gift received…except for that when sold amt. is in-between the basis and fmv…then no gain/loss…rest all is very confusing..pls help how to remember it easily..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

i am not able to catch the gain/loss calculation of gift received…except for that when sold amt. is in-between the basis and fmv…then no gain/loss…rest all is very confusing..pls help how to remember it easily..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Kodiak]

Qlad — say for example you received a gift from a friend. They paid $50 for it (their basis) and the FMV of the gift on the day they gave it to you was $100. The numbers you need to pay attention to are the donor's basis, FMV on date of gift, and what the sales price you sell it at is.

If you sell it later on and the sales price is above the FMV of the gift — say $125 — you use the donor's basis. Your recognized gain in this case would be $75 (125-50).

However, if you sell it for less than the donor's basis — say $30 — then you would use the FMV on the date of the gift for the basis in determining the loss. Your recognized loss would be $70 (100-30).

Hopefully my understanding is correct. I only remember two words to keep this straight.. GAIN-BASIS, meaning a loss would use FMV.

AUD - Pass
FAR - Pass
BEC - Pass
REG - Nov

[Author]

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