A Tax Question

[Woolygimp]

There's a bipolar midget of a man named ToolmanTed, and he makes around $140,000 a year in untraceable cash.

ToolmanTed has no intention of paying his income tax on his untraceable earnings, and subsequently devises a possible plan. ToolmanTed's parents are rich, own a large business, file near perfect returns, and have never had any trouble as far as taxes are concerned.

So ToolmanTed asks his parents to show that they gifted him $12,000 on their tax return, and this amount would classify as tax free. So assuming his parents have nothing to worry about on their end [if they were to get audited], this would give him an excuse to have $12,000 in an investment account without stated income or employment.

[No money would trade hands. The $12,000 is Ted's money, yet it was just filed as a gift by a family member.]
$12,000 isn't enough though.

So what if his parents filed that they gifted each of their other four kids $12,0000 for that year...then those kids each file that they all gift $12,000 to ToolmanTed?

Hypothetically, wouldn't this excuse the $48,000 in investments in Ted's accounts even though he didn't file a return for that year?

ToolmanTed would post these questions himself, but he lost all of his indexes in a freak bowling accident that involved a stripper from Portugal, Crazyglue, and a cassette tape of Michael Bolton. Unfortunately he can not properly, and safely operate a keyboard instrument therefor I had to be the upstanding citizen and post in his stead.

[Big TR]

A. Good luck getting ToolmanTed's siblings and parents to agree to tax fraud.

B. If ToolmanTed was ever audited, the auditor would ask where the funds came from. Ted would slyly say, "Gifts from my family, good sir." The auditor would then go to the gift tax returns and ask those who filed them to produce the bank statements showing the funds were paid to ToolmanTed. Now, Ted is busted and will probably go to federal pound him in the ass jail.

[Phone Booth]

[ QUOTE ]
There's a bipolar midget of a man named ToolmanTed, and he makes around $140,000 a year in untraceable cash.

ToolmanTed has no intention of paying his income tax on his untraceable earnings, and subsequently devises a possible plan. ToolmanTed's parents are rich, own a large business, file near perfect returns, and have never had any trouble as far as taxes are concerned.

So ToolmanTed asks his parents to show that they gifted him $12,000 on their tax return, and this amount would classify as tax free. So assuming his parents have nothing to worry about on their end [if they were to get audited], this would give him an excuse to have $12,000 in an investment account without stated income or employment.

[No money would trade hands. The $12,000 is Ted's money, yet it was just filed as a gift by a family member.]
$12,000 isn't enough though.

So what if his parents filed that they gifted each of their other four kids $12,0000 for that year...then those kids each file that they all gift $12,000 to ToolmanTed?

Hypothetically, wouldn't this excuse the $48,000 in investments in Ted's accounts even though he didn't file a return for that year?

ToolmanTed would post these questions himself, but he lost all of his indexes in a freak bowling accident that involved a stripper from Portugal, Crazyglue, and a cassette tape of Michael Bolton. Unfortunately he can not properly, and safely operate a keyboard instrument therefor I had to be the upstanding citizen and post in his stead.

[/ QUOTE ]

Just pay your taxes. Have you heard of circumstantial evidence?

[bwana devil]

im not sure how ted came about his money, but each parent can gift $12,000. so he can receive $24,000 w/out tax consequences from his parents.

[Big TR]

You missed the part where Ted's parents didn't actually give him any money, they just filed a tax return saying they did.

[Woolygimp]

There doesn't need to be a bank statement showing a deposit. If someone just hands someone cash that's sufficient, so seriously stop being retarded even though it may come naturally to you.

Person: Yes, I was gifted the money from family members.

Auditor: WHAT! I DON'T SEE IT ON BANK STATEMENTS, YOU GO TO JAIL.

Person: Uh...It was in cash.

Auditor: Cash!?!? Does not compute.

[BradleyT]

I think it would be hard to lead a $12,000 lifestyle on $140,000 income. If Ted puts all his cash in an investment account what money is he living off?

[Big TR]

Wow, somebody needs a hug.

Seriously, seek help for your issues.

[Woolygimp]

[ QUOTE ]
I think it would be hard to lead a $12,000 lifestyle on $140,000 income. If Ted puts all his cash in an investment account what money is he living off?

[/ QUOTE ]

Ted is living with his parents.

[ahnuld]

pay taxes on your poker money