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By David L. Greene and David L. Greene,SUN NATIONAL STAFF | September 9, 1998
WASHINGTON -- Rest assured, baseball fans. You've got friends in high places.A day after the Internal Revenue Service acknowledged that a federal gift tax of more than $100,000 might apply to the fan who catches Mark McGwire's 62nd home run ball and returns it -- for free -- to the slugger, some members of Congress fought back with scornful words and threats of legislation.And the IRS, an agency that has tried to make itself more benevolent, was limping back from yet another public relations blow, explaining that its complex gift tax would not cruelly ruin the day for a lucky fan after all."
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NEWS
Robert L. Ehrlich Jr | March 24, 2013
Typical daily schedule for a member of the United States Congress: •8:30 a.m. - National Wind Energy Association: to discuss wind production tax credit. •10 a.m. - National Association of Manufacturers: to discuss accelerated depreciation schedules and corporate income tax. •11 a.m. - National Association of Realtors: to discuss home mortgage deduction and capital gains exclusion on home sales. •1 p.m. - The Alliance for Charitable Reform, National Cystic Fibrosis Foundation, American Cancer Society, Muscular Dystrophy Association: to discuss enhanced funding for National Institutes of Health and federal charitable deduction.
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BUSINESS
By NEW YORK TIMES NEWS SERVICE | July 24, 2005
It's not uncommon for a property owner to add the name of another person - a significant other, a spouse, a child or a parent - to a deed or a co-op stock certificate. But doing so can have important federal tax ramifications. "People put other people's names on deeds all the time," said Susan Lee, a tax and financial planner in New York. "And that can end up being a real problem for, among others, gay couples and unmarried heterosexual couples." Lee said that someone who adds another person's name to a deed or co-op stock certificate is often unaware of the tax ramifications, both immediately and many years down the road.
BUSINESS
By Eileen Ambrose and Eileen Ambrose,Sun Columnist | May 29, 2007
Taxes and estate issues are tricky. Not surprisingly, last week's column on the tax consequences of putting children's names on the deed of a parent's house raised questions from readers. Here are the answers: Raphael of Baltimore sold a house he inherited from his father and gave $28,000, the majority of the proceeds, to his son and daughter-in-law. "Am I liable for any taxes on the sale of the house?" he asks in an e-mail. "And if I gifted the bulk of the money that I received in the sale, can I deduct it on my income taxes?"
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,SPECIAL TO THE SUN | March 3, 2002
My son died 18 months ago. He left behind his fiancee and twin girls. My husband and I are separated and each received $25,000 from our son's life insurance policy. We are both very close to his fiancee, who has asked whether she could have $10,000 from the life insurance proceeds. She would use it to have new siding put on the house, which desperately needs it. I have no problem with helping her, but I wonder what tax implications I will have. Earlier this year I gave her $5,000 toward the purchase of a new car. Don't let tax worries prevent you from helping your grandchildren and their mother.
BUSINESS
By JONATHAN A. AZRAEL | June 30, 2002
Dear Mr. Azrael: Is there a relatively easy way to transfer ownership of property from one sibling to another? Also, are there any tax implications for either sibling in this transfer? Christine Beauregard Pasadena Dear Ms. Beauregard: The state of Maryland and local counties impose taxes on the transfer of real property. The state transfer tax is one-half percent of the purchase price. The state also imposes a recordation tax. The rate varies among counties but typically is 0.5 percent to 0.7 percent of the purchase price.
BUSINESS
By Michael Gisriel | December 15, 1996
Dear Mr. Gisriel:I have been very fortunate the past few years with my investments, including those in real estate. Since it is the end of the tax year, are there any tax-saving strategies that you recommend?Name withheld by requestBaltimore Dear investor:Following are a few strategies you might consider:Give away your big gainers. If you are planning a sizable charitable donation, your best bet is to make a gift of appreciated assets -- including real estate investments.You can avoid the capital gains tax, while securing an income tax deduction for the full fair market value of your donation.
BUSINESS
March 9, 2000
Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15. I am giving land to a daughter. I want to claim $10,000 per year as a gift to her. Do I show this on my tax return, and, if so, how? Are there other forms to file? Gifting to other than a charity is not an event with income tax consequences. So, there is no reporting on the income tax filings. The annual exclusion from gift tax is $10,000; so, that amount gifted to a daughter each year incurs no gift tax. Some practitioners would recommend filing a Form 709 gift tax return each year.
BUSINESS
February 11, 2001
Dear Mr. Azrael, My father assisted my husband and myself in purchasing our house in [Baltimore] City and consequently, his name/signature is on the mortgage and every other piece of paper associated with the purchase. He has asked me to remove his name from the deed for liability reasons. I do not know how to do this or where to begin. Would you be able to shed any light on this issue? Heidi Busch-Gallanar Baltimore Dear Ms. Busch-Gallanar, Removing your father's name from the deed is easy.
BUSINESS
February 14, 1995
Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.Q: My question involves a gift of common stock to another person, not a relative. First, who pays the gift tax, the giver or the receiver? Second, how do you compute the amount of the gift value? Is it the amount I paid for the stock ($17,000) or the current value of the stock ($37,000)?A: An individual may give up to $10,000 per year per donee tax free. Gifts in excess of $10,000 may result in a gift tax, which the donor pays.
BUSINESS
April 10, 2007
Editor's note: Every Tuesday through the end of tax season, The Sun will run an edited transcript of baltimoresun.com's weekly tax advice column featuring three experts from the Hunt Valley accounting firm SC&H Group. My father "gifted" his house to my sister and me in October 2005. He retained lifetime rights. He passed away in June last year, and we sold the house in December. Do we owe capital gains tax? If so, on what portion? - Valerie, Pocomoke, Va. The tax basis in the house will be the same as your father's basis - increased by a proportional amount of any gift tax that he paid when he transferred the house to you. Assuming that he purchased the house, your dad's basis would be the cost that he paid plus any improvements made to the house.
BUSINESS
By CAROLYN BIGDA and CAROLYN BIGDA,TRIBUNE MEDIA SERVICES | March 5, 2006
Imagine your grandparents slipping you some spending money, as grandparents so often do. But instead of $5, it's a check to cover your college tuition or the down payment on a first home. It may seem like the privilege of a few wealthy elite, but today's grandparents, on the whole, have amassed more financial assets than previous generations. In fact, it's estimated they'll pass on $25 trillion over the next couple of decades. And many want some of that wealth to benefit you, their grandchildren.
BUSINESS
By NEW YORK TIMES NEWS SERVICE | July 24, 2005
It's not uncommon for a property owner to add the name of another person - a significant other, a spouse, a child or a parent - to a deed or a co-op stock certificate. But doing so can have important federal tax ramifications. "People put other people's names on deeds all the time," said Susan Lee, a tax and financial planner in New York. "And that can end up being a real problem for, among others, gay couples and unmarried heterosexual couples." Lee said that someone who adds another person's name to a deed or co-op stock certificate is often unaware of the tax ramifications, both immediately and many years down the road.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,SPECIAL TO THE SUN | February 16, 2003
My mother-in-law still lives in her home of 45 years, but she transferred the title to my wife and sister-in-law. We're wondering now about the possible tax consequences of that move. The home was bought for about $25,000 and is now worth $125,000. Also, it's possible my mother-in-law may want to sell her house sometime. If so, wouldn't we need to change the title before the sale? Otherwise, wouldn't my wife and sister-in-law have to pay taxes on the profit? Was there a better way to handle this?
BUSINESS
By EILEEN AMBROSE | October 27, 2002
A COLLEGE savings plan has become a popular way to save for education. Now it's also being promoted for estate planning. While some of the plan's features make it an attractive estate planning tool, financial experts advise people to proceed with caution. "Would you do it in every situation? No," said Philip Hayne, an estate planning expert with Principal Financial Group in Des Moines, Iowa. "You have to look at what other options are out there and just try to figure out what makes the most sense."
BUSINESS
By JONATHAN A. AZRAEL | June 30, 2002
Dear Mr. Azrael: Is there a relatively easy way to transfer ownership of property from one sibling to another? Also, are there any tax implications for either sibling in this transfer? Christine Beauregard Pasadena Dear Ms. Beauregard: The state of Maryland and local counties impose taxes on the transfer of real property. The state transfer tax is one-half percent of the purchase price. The state also imposes a recordation tax. The rate varies among counties but typically is 0.5 percent to 0.7 percent of the purchase price.
BUSINESS
By Liz Pulliam and Liz Pulliam,LOS ANGELES TIMES | December 26, 1999
We gave our granddaughter $10,000 from my wife's Keogh this year. We had started taking annual distributions from the account, although for a smaller amount. Our income tax preparer said the gift is not deductible. Our son, who is very knowledgeable about income taxes, says this is a one-time gift to a relative and is deductible. Who is right?Not your son, that's for sure. Gifts to individuals are never tax-deductible, one time or any time. This makes me wonder what other advice he's given that could be injurious to your financial health.
BUSINESS
By Karen Lazarovic VTC and Karen Lazarovic VTC,Columbia Features Inc | May 1, 1991
Q. A friend told me that I should buy options as a way to increase my returns on my stocks. He told me that there wasn't much of a risk. What do you think? A. F., BaltimoreA. Options allow a person to participate in the stock market without necessarily owning stock. When you buy or sell an option you pay a price (called a premium) for the right to buy or sell a stock for a specific time at a specific price. Two basic types of options are called "puts" and "calls."A call is the most frequently traded option.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,SPECIAL TO THE SUN | March 24, 2002
My wife and I live on Social Security, my pension and our individual retirement accounts. Last year we took $10,000 out of one of our IRAs and gave it to our son and daughter-in-law to help with the down payment on their house. We filed a gift tax form and made estimated tax payments using a form the IRS sent us. Now we're doing our taxes and it turns out that $10,000 gift put us in a higher tax bracket, which means we'll pay out a bundle. But I recently read in your column that each person can give up to $11,000 a year to anyone else without paying gift taxes.
BUSINESS
By Liz Pulliam Weston and Liz Pulliam Weston,SPECIAL TO THE SUN | March 3, 2002
My son died 18 months ago. He left behind his fiancee and twin girls. My husband and I are separated and each received $25,000 from our son's life insurance policy. We are both very close to his fiancee, who has asked whether she could have $10,000 from the life insurance proceeds. She would use it to have new siding put on the house, which desperately needs it. I have no problem with helping her, but I wonder what tax implications I will have. Earlier this year I gave her $5,000 toward the purchase of a new car. Don't let tax worries prevent you from helping your grandchildren and their mother.
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