stocks

[Coronita]

[quote=FlyerInHi][quote=flu] Doubled my contribution to the 529k…..next year, will start taking capital gains distributions from it tax free to pay for a nieceand nephew private K and 1st grade school
tax free……their parents will each gift me back the money in cash. rinse and repeat each year …..better than investing in my own accounts and having to pay capital gains taxes in it…pretty much the same funds in 529k and my own vanguard after tax account. That $20k in distribution starting next year out of 529k for private k-12 will end up being close to $240k tax free distribution that moves that earned money back out, provided the new tax laws don’t change over the next 12 years. the theoretical limit of each 529k account is slightly over $500k… heh heh[/quote]

Isn’t that illegal. You may not be found out by the IRS. But you know what you did.[/quote]

Nope. Clearly you don’t understand the the tax codes concerning 529k plans that have always existed and clearly you don’t understand the trump/Republican tax reform changes.

You can always open a 529k plan for anyone in your family including yourself and any relative related to you. And you can always change the beneficiary of the 529k plan to anyone subject to the gift tax exclusion. This has existed since the beginning of 529k. This is why if you have a large 529k for one kid and it doesn’t end up used completely, you can designate a new beneficiary… You can even rollover portions part of the money from one 529k to another 529k slowly so that you are well below the gift tax exclusion allowed per person per year. This is all in publication by the IRS. None of this has changed.
(This was one of the sore spots that the Obama administration wanted to go after to pay for The American Opportunity Tax Credit because a tiny percentage of the population that was using the 529k is wealthy and was using the 529k plan to shelter money used for a lot of kids and relatives for generations. However, the vast majority of the people with 529k were just normal middle class and upper middle class , hence why there was such a backlash and why that administration ended up undoing it. )

Now theoretically , before you only could use the 529k towards college tuition.. 4 years and maybe graduate school…financially there was a upper limit on how much you wanted to put into a 529k since it could only be used for college tuition and if you contributed too much , you might be in for penalty when you had to take money back out….

BUT…thanks the Trump/Republican tax reform , the 529k can now be used to pay for private K-12 school for any relative… This was done arguably to union bust and give the finger to public schools since it would encourage more people with more money to put their kids into private schools and to give all those wealthy families that send their kids to private prep schools a huge tax break. But what’s even cooler is you don’t need to be ridiculously wealthy to benefit from this new tax law change… As all you are doing is using the existing (updated) 529k tax rules to allow you to legally pay for any “family” college and now K-12 education and the existing $15k per year per person gift tax exclusion.

And the maximum amount you can contribute to the 529k plan is set by the state adminstered plans, not the IRS. California’s ScholarShare plan cap is slightly above $520k.
.versus Nevadas vanguard plan cap is at $450k.

[FlyerInHi]

Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.

An analogy would be like claiming a deductible expense when in fact you’re being reimbursed under the table

[Coronita]

[quote=FlyerInHi]Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.[/quote]

I am certainly not getting reimbursed for the tuition.

They are gifting me back simply because they love me.

And there’s nothing that says they can’t setup their own 529 plan and end up paying for my kids education out of it. The difference is that they have no capital gains right now because they are just starting out…
So they can accumulate their capital gains and use that toward my kids college while my 529k with capital gains can be used right away. And there’s nothing saying they need to gift me back in the exact same year the exact same amount…and there’s no need for a justification for the gift…as long as it’s below the gift tax exclusion threshold…. so there…

Nice try throwing around fake terms for fake things that is already legally defined in our tax codes.

[FlyerInHi]

[quote=flu][quote=FlyerInHi]Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.[/quote]

I am certainly not getting reimbursed for the tuition.
[/quote]

You linked the transactions in your first post.

Like I said, you may not be found out. But we all know your tax avoidance strategy. Yes, you’re so smart!

[Coronita]

[quote=FlyerInHi][quote=flu][quote=FlyerInHi]Yes, but you’re getting reimbursed by the parents in cash. So you’re not paying for education.[/quote]

I am certainly not getting reimbursed for the tuition.
[/quote]

You linked the transactions in your first post.

Like I said, you may not be found out. But we all know your tax avoidance strategy. Yes, you’re so smart![/quote]

Are you referring to tax avoidance or tax evasion? the past couple of times you admitted to not paying sales tax. that’s tax evasion.

[Coronita]

what Brian ? don’t like being called out for being a tax cheat after trying to call someone else out for working within the confines of the IRS tax code? i predict you will go dark on this thread….in 3…2…1…

[FlyerInHi]

I will let readers make their own assesements of your actions.

Not paying sales taxes when Amazon fails to collect taxes is a different story. Few consumers file use tax returns. The expectation of that happening is nil. Sorry, there is no moral equivalency.

[Coronita]

[quote=FlyerInHi]I will let readers make their own assesements of your actions.

Not paying sales taxes when Amazon fails to collect taxes is a different story. Few consumers file use tax returns. The expectation of that happening is nil. Sorry, there is no moral equivalency.[/quote]

i think readers don’t give a shit….frankly…I think some of us do think your hypocrisy is funny….

and I am not trying to win a popularity contest, never have , never will… you apparently, still are even after you got banned…

I couldnt give a shit what people left on the board thinks because all the ones I like I already know already left or are silently still lurking here , kinda laughing.

[FlyerInHi]

No polarity contest needed. You put out a “nifty” tax strategy on an investment.thread. Readers can decide if it’s an advisable move.

[Coronita]

[quote=FlyerInHi]No polarity contest need. You put out a “nifty” tax strategy on an investment.thread. Readers can decide if it’s an advisable move.[/quote]

oh please. get off of your fake moral righteous bullshit high horse that no one believes anyway.
Bye, got to go.. I have a life. I suggest you get one too so you don’t have to camp out here looking for attention.

[FlyerInHi]

I don’t have a lunch date so I’m enjoying an organic lunch with my phone.

But what moral high horse? I am focusing strictly on the strategy you laid out.

[Hobie]

“Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”

Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947)

)

[Coronita]

[quote=Hobie]”Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”

Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947)

)[/quote]

Thank you.. There’s a fine distinction between Tax Evasion versus Tax Aversion

Tax Evasion would be someone that admits they don’t pay state sales tax because Amazon didn’t collect it, despite all state tax laws that REQUIRE you by law to self report sales tax that a merchant didn’t collect. Dodging that is ILLEGAL…. Now, I’m not one to say whether someone should or shouldn’t self report uncollected sales tax, but Brian, on a previous thread (under his old handle, BrianSD not his current handle FlyerInHi) proudly boasted he didn’t pay state sales tax, on a thread that he also boasted how people should pay more taxes… So again, it’s not that I or many other on that thread that called him out on that, was really trying to take the higher morale ground, since whether or not you want to report uncollected sales tax is certainly a personal decision…But within the context of that old post by BrianSD (FlyerInHi), we (a few of us) were mocking the apparent hypocrisy of what he was saying: “everyone should pay more taxes, everyone but me”….The same double talk that always is spoken by BrianSD and FlyerInHi…which is why no one ever takes the morale righteousness from either of these handles seriously…. And once again, by responding to the thread, once again, it’s just one more proof that the two handles FlyerInHi and BrianSD are really the same two handles, despite the denial….. Thanks AGAIN for that confirmation… But what do you expect? The far left progressives are big time liars…

[Coronita]

[quote=Hobie]”Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.”

Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947)

)[/quote]

Thank you.. There’s a fine distinction between Tax Evasion versus Tax Aversion

Tax Evasion would be someone that admits they don’t pay state sales tax because Amazon didn’t collect it, despite all state tax laws that REQUIRE you by law to self report sales tax that a merchant didn’t collect. Dodging that is ILLEGAL…. Now, I’m not one to say whether someone should or shouldn’t self report uncollected sales tax, but Brian, on a previous thread (under his old handle, BrianSD not his current handle FlyerInHi) proudly boasted he didn’t pay state sales tax, on a thread that he also boasted how people should pay more taxes… So again, it’s not that I or many other on that thread that called him out on that, was really trying to take the higher morale ground, since whether or not you want to report uncollected sales tax is certainly a personal decision…But within the context of that old post by BrianSD (FlyerInHi), we (a few of us) were mocking the apparent hypocrisy of what he was saying: “everyone should pay more taxes, everyone but me”….The same double talk that always is spoken by BrianSD and FlyerInHi…which is why no one ever takes the morale righteousness from either of these handles seriously…. And once again, by responding to the thread, once again, it’s just one more proof that the two handles FlyerInHi and BrianSD are really the same two handles, despite the denial…(Thanks AGAIN for that confirmation. What is it, 4 times in a row now? …I’ll stop asking once you admit what everyone already know BTW)… ..Anyway, I digress from a digression thread jack on a stock thread. Go figure.

Back on topic… Looks like at the G20, Trump flipped sides again and things are cool with Huawei again, at least for now… Looks like the stock market, chip sector will rally this week… 7/7 is a big day.. Big product releases coming from AMD..

[spdrun]

I’m not sure if this is true. The annual gift limit is $11,000 per year. If someone gave you $5,000 per year, claimed it was a gift out of the goodness of their heart, but it was actually compensation for work done for them, the IRS would demand tax on that money if you were caught. Probably fines too. Volunteering is legal. Gifts are legal. But the combination of the two would likely be seen as taxable.

Same thing with your tuition dodge. They may see the gift as not freely made, but as compensation for the payment of tuition. They might demand payment, fines, and you’ll end up on their audit shitlist for a decade.

Give another example. Is a donation to a charity really a donation to a charity if the charity kicks you back the exact same amount in cash? IRS would likely say “hellz to the no.”

Now the gray area would be barter. What if you paid $5000 of tuition for the student and their family gave you a used car worth roughly $5000 as a gift?

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