allenjj wrote:
Actually, any gift over 14k dollars in a one year period will be taxed. My wife and I learned this from our attorney when we were trying to figure out how to split up her inheritance between her brother and sister. She actually had to dis-inherit the total amount she wanted to give them, because inheritance money isn't taxed.
Your lawyer lied to you. It just became untaxed to
$12000 this year, last year was $11000.
Also if you read
here. It is the giver that is taxed as well, not the recipient So what I was replying to was true, who cares if they give you all that stuff it is free to you.
Quote:
No Tax on the Person Receiving your Gift or Estate
The person who receives your gift or your estate generally will not have to pay any gift tax or estate tax because of it. In addition, that person will not have to pay income tax on the value of the gift or inheritance received. NOTE: There are some technical applications for "Income in Respect of Decedent" under §691 that will have to be considered for income earned but not otherwise taxed prior to the date of death.
Part of your problem sounds like it is from how the will was done. If the money was to be split they should of all been seperate inheritences.
wingchild wrote:
dirges wrote:
--------------------------------------------------------------------------------
Having stuff in a bank is not a gain, nor is paying to play a game.
--------------------------------------------------------------------------------
Money in the bank suffers no tax, as it has already been taxed at several other points in the course of coming to you. Take payroll taxes as an example;
- Company produces a product
- Company sells a product, and sales tax is assessed on the buyer
- Company receives money, which is taxed at the corp level (ha)
- Company pays you, which is taxed as per income tax
- You go to spend part of that money, and pay a sales tax on what you buy
- You throw the money in the bank, where its safe.
Except it's not safe from taxes on any interest gained on the balance in your account, of course. They ***** us on that one, too.
Actually all those taxes would be part of your fee to play the game. I havent seen how our fees are divided up, but the company produces the product, sells the product to us, and pays corporate tax. We have yet to gain anything since everything is still part of the product. Gaining doesnt happen until someone sells outside of the game, but untill then get stuff ingame is like finding the toy in a box of cereal. It can be nice, it can be junk, but it isnt worth anything, unless you find an idiopt to buy it.
Your property tax example is close to being the only possible way to work a MMO item tax, since property taxes are a screwy system anyway. Afterall they are more like a longterm veriable rate lease then a tax. The way land is we can own it, but not truly own it. But then again any company can totally ***** the evaluations by randomly changing the drops. If it is common, it isnt worth anything right?
Quote:
but they'll have a fine time trying to apply those same tax regulations to a purchase that occurs with virtual goods stored on an overseas server handled by a third party extra-national broker.
The US already has a law to handle this, if you are american it doesnt matter where the gain is made, you are still suppose to report it to the IRS.