Hollywood lawyer paid off over $2M of Hunter Biden’s delinquent taxes

https://nypost.com ^ | Hollywood lawyer paid off over $2M of Hunter Biden’s delinquent taxes | By Miranda Devine, Marjorie Hernandez and Patrick Reilly

[Svartalfiar]

Here’s the scheme: ( I don’t know if this is actually workable)

I don't see the benefit there. You say they both owe taxes on $2MM, which is less than the $2MM owed. Yes, but you're ignoring that Hunter is out $2MM anyway from paying the retainer, and the lawyer is out $2MM from paying the taxes for him. So really, they owe MORE with that scheme, because Hunter then owes the tax on the $2MM gift (for which he paid $2MM), and the lawyer owes taxes on the $2MM "income" that he just passed through and didn't get to keep a penny of. And I'm pretty sure gift-paying someone else's taxes is NOT a valid business expense he can just write off and zero out.

[Svartalfiar]

The way I understand this transaction is the person paying off Hunter's 2 million tax liability is a gift. Hunter has no tax liability. The person making the gift that exceeds reporting requirements has to report it to the IRS..

Yes, the donee is not responsible for any taxes unless they agree to do so. The donor is responsible for taxes on the gift, after a $15M annual exclusion, unless it's for tuition/medical debt, to a spouse, or certain charitable or political organizations.

[Red Badger]

Hunter avoids paying the fine and the interest penalties...............

[MoeMatters]

My thought exactly this is considered income

[Svartalfiar]

Ah, let me change that paragraph:

Hunter would owe nothing more or less, he’d just be out the $2MM retainer (same as his tax bill). Gift donees don’t owe gift taxes unless they agree to be the owing party, the IRS default is the donor owes it.

The lawyer, as the one giving the gift, would owe taxes on the $2MM income from the retainer, as well as the gift tax on $1,985,000 of the gift, since he certainly used up his $15M annual exclusion per gift recipient. Of course, that taxable amount could be lowered by $15M per person if the lawyer “has his wife pay” for some of the gift (over and above the $15M exclusion), as well as have all his partners or clerks or whatnot make a gift as well. (133 other people is enough to zero out any owed gift tax!) Of course, if he gifts each of them $15M for the purpose of them then gifting that money to Hunter, for the sole purpose of paying less gift tax, I doubt the IRS would like that very much...

So still, Hunter has the same bill wither way, the lawyer loses money if he agrees to such a convoluted scheme!

[Svartalfiar]

Hunter avoids paying the fine and the interest penalties...............

How so? If the lawyer pays only the tax bill, then interest and penalties are still owed, and they're on Hunter's name, and will be auto-taken out of any future refunds he gets. With additional interest.
If the fines and penalties were included in the lawyer's gift tax payment, then didn't Hunter pay them anyway as part of the $2MM retainer?

[Svartalfiar]

My thought exactly this is considered income

It is not. IRS does not consider gifts as income, and any transfer of money or value for nothing/less in return, is considered a gift.

The lawyer will owe gift taxes on $2MM - $15M annual exclusion, but Hunter is in the clear, assuming that the gift payment included all fines, penalties, and interest on top of the base amount Hunter owed.

[Eagles6]

We will get nothing.
At least half of the GOP is okay with a stolen election, a wide open border, an invasion by tens of millions of illegal 3rd World parasites and the destruction of the Republic.
Time to buy some property in the mountains, some popcorn and sit back and watch the show.

[Jim Noble]

When Republicans take the House, we’ll finally get answers about Hunter and Joe Biden

HA

HAHA

HAHAHA

[Jim Noble]

Who paid the gift tax?

[Lurkinanloomin]

I’ve already done that.

[VTenigma]

Why is that not also considered income?

[VTenigma]

Why is that not also considered income?

[EVO X]

This was a guess and I suspected it for quite some time. Laptop from hell suggests he is totally broke but yet he is living high on the hog in costal LA. A sugar daddy makes sense...

A

[M Kehoe]

Morris and Biden should get a room and swap spit.

5.56mm

[BipolarBob]

I think taxes on large gifting is pretty stiff. I'm sure Hunter reported it though and paid his fair share of taxes.

/sarc

[Eagles6]

😉👍👌

[ridesthemiles]

IF he did-—HE CANNOT deduct those payments-—because the taxes owed were NOT his taxes.

It ALSO is far more than a non-taxable gift allowance by the IRS.

That LIMIT is about $13,000-14,000 dollars.

Anything higher—the TAX on the excess MUST be Paid by the GIVER.

Tax on $1,986,000 is substantial.

Looks like a major audit is coming for this “Friend of Hunter”.

[ridesthemiles]

NON-TAXABLE limit on Gifts is about $14,000.

Anything higher —the tax must be paid by the GIVER.

[Robert A Cook PE]

My question as well. Isn’t such a third party payment, particularly if the pair are already in a business client consulting relationship a RICO conspiracy or a “gift” taxable income?