Ensign & the $12K "tax" on donation thing..

[SoCalDem]

If $12K is the magic number, why do Casinos give you a 1099 when you "win" 1,200.00 dollars?.. and I thought those "donation limits" were for FAMILY members and were once a year only.. How does one "give" $100K to TWO people in $12K increments , tax free...people who are NOT related?

It's either:

hush money
extortion

[lindisfarne]

1. "restitution", according to an anonymous source quoted at Rawstory. Euphemisms for bribe are

increasing greatly.

[SoCalDem]

2. yes, but Money is money..and if it's restitution, wouldn't that make

it like a "payment"?..for services rendered, but not paid for originally?? Not a lot of difference from Spitzer's deal..except he paid upfront:)

[lindisfarne]

3. I believe I made it clear that I consider it a bribe. n/t

[intheozone]

4. 12K annual exclusion is gift tax limit

Each person can give up to 12K to any other person without having to file a gift tax return and report it as a gift. You can give as many 12K gifts as you like as long as they all are to separate donees. The mom and the dad each gave 12K to the wife, husband and both of the two children (supposedly), so mom gave $48K, dad gave $48K for a total of $96K from the couple. If that is what actually happened (big if),then there are no gifts to be reported or taxed.