The amount of people living subsidized by their parents is astounding

[Anonymous]

Anonymous wrote:This is my sister and her family: she and her husband started investing well in real estate starting in the 1980s in a very high COL area. Fast forward to present day - all of her residential properties are now occupied by her children and their children. They work in their careers, but they don't pay rent or mortgages. She gets to live near them, because otherwise they would have had to leave that area long ago.

Ha! this is my plan, though I have one kid in college and one in high school. We have a couple rental properties and will let our kids live in them and all they will have to pay is the taxes and upkeep. our plan has always been to blow through 401k and brokerage money and then just leave a bunch of property to our kids and grandkids who can inherit and take advantage of the stepped up basis.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I happen to know who in my circle is supported financially by their parents. They are not shy about sharing this information. But once they share it, I am now aware that everything they do is only possible because of their parent’s hard work & business acumen — not their own.

It does change my perception of them, I can’t lie. It’s an American thing. We value self made people. Whether you like it or not, those people will always be respected more.

A) You only know about the ones that tell you

B) The wealth isn’t necessarily from hard work and acumen

C) America is as built on nepotism and inherited wealth as most other countries, don’t delude yourself

I actually disagree. I think America was built on the backs of laborers and working class.

Yet you have a problem with those people succeeding, acquiring some amount of wealth, and passing any money to their descendants.

Nobody has a problem with any of that. Many of us have a problem with their descendants not having to pay taxes on their payouts.

Why? It's post tax money.

Not when it changes hands. Otherwise why should I pay taxes on the money you give me to change your oil?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

NP. Why just rich kids? If you want to tax gift money, you’re talking about some poor kid’s $50 graduation gift too.

Not necessarily -- even W9 income has a limit from any individual payer before it gets reported to the government, and that limit is higher than $50.

I've been the beneficiary of some very generous gifts from my late grandparents and my parents over the years. It was obviously better for me that I didn't have to pay taxes on that, but it was also obviously unfair. I wouldn't argue at all if someone wanted to change the law (though I think we all know that law will never be changed). I don't see how anyone could argue otherwise unless they just don't want to think for even a half a second about the moral implications of being given money just because of who your parents happened to be.

I am in the same boat but also feel strongly that money which has already been taxed, sometimes twice (Income and cap gains) should not be taxed a third time via a gift to my offspring. If there is any loophole to close it's the step up in cost basis upon death - exclude businesses and farms.

I feel the money that you already paid taxes on, sometimes twice (income and cap gains) should not be taxed a third time when you give it to me to: clean your house, or cut your hair, or serve your food, or write your will, or perform your colonoscopy, etc.

My cleaner accepts venmo. Whether she claims it as income is up to her. I'd be willng to bet MANY Americans DON'T pay taxes on some of the income you described. Additionally, my kids are not a business. They are my dang offspring.

I am paying for a service aka a business. My kid is my kid. I can gift my cleaners 19k if I want, I could gift my Dr 19k if I want. They wouldn't need to pay taxes on it either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

One is wages from a business to an employee in exchange for working for them; the other is a gift between family members, as a gift.

[Anonymous]

I haven't read the thread, but it looks like OP has just discovered there are rich people and it's not fair.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I happen to know who in my circle is supported financially by their parents. They are not shy about sharing this information. But once they share it, I am now aware that everything they do is only possible because of their parent’s hard work & business acumen — not their own.

It does change my perception of them, I can’t lie. It’s an American thing. We value self made people. Whether you like it or not, those people will always be respected more.

A) You only know about the ones that tell you

B) The wealth isn’t necessarily from hard work and acumen

C) America is as built on nepotism and inherited wealth as most other countries, don’t delude yourself

I actually disagree. I think America was built on the backs of laborers and working class.

Yet you have a problem with those people succeeding, acquiring some amount of wealth, and passing any money to their descendants.

Nobody has a problem with any of that. Many of us have a problem with their descendants not having to pay taxes on their payouts.

Why? It's post tax money.

Not when it changes hands. Otherwise why should I pay taxes on the money you give me to change your oil?

NP. Well…yes. That’s how gift money works. Otherwise, why shouldn’t you be paying income tax on the cash value of the sweater your aunt got you for Christmas

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

NP. Why just rich kids? If you want to tax gift money, you’re talking about some poor kid’s $50 graduation gift too.

Not necessarily -- even W9 income has a limit from any individual payer before it gets reported to the government, and that limit is higher than $50.

I've been the beneficiary of some very generous gifts from my late grandparents and my parents over the years. It was obviously better for me that I didn't have to pay taxes on that, but it was also obviously unfair. I wouldn't argue at all if someone wanted to change the law (though I think we all know that law will never be changed). I don't see how anyone could argue otherwise unless they just don't want to think for even a half a second about the moral implications of being given money just because of who your parents happened to be.

I am in the same boat but also feel strongly that money which has already been taxed, sometimes twice (Income and cap gains) should not be taxed a third time via a gift to my offspring. If there is any loophole to close it's the step up in cost basis upon death - exclude businesses and farms.

I feel the money that you already paid taxes on, sometimes twice (income and cap gains) should not be taxed a third time when you give it to me to: clean your house, or cut your hair, or serve your food, or write your will, or perform your colonoscopy, etc.

My cleaner accepts venmo. Whether she claims it as income is up to her. I'd be willng to bet MANY Americans DON'T pay taxes on some of the income you described. Additionally, my kids are not a business. They are my dang offspring.

I am paying for a service aka a business. My kid is my kid. I can gift my cleaners 19k if I want, I could gift my Dr 19k if I want. They wouldn't need to pay taxes on it either.

Awesome. New business model unlocked. Soon no one will pay taxes and then we’ll collectively all be better off. Right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I happen to know who in my circle is supported financially by their parents. They are not shy about sharing this information. But once they share it, I am now aware that everything they do is only possible because of their parent’s hard work & business acumen — not their own.

It does change my perception of them, I can’t lie. It’s an American thing. We value self made people. Whether you like it or not, those people will always be respected more.

A) You only know about the ones that tell you

B) The wealth isn’t necessarily from hard work and acumen

C) America is as built on nepotism and inherited wealth as most other countries, don’t delude yourself

I actually disagree. I think America was built on the backs of laborers and working class.

Yet you have a problem with those people succeeding, acquiring some amount of wealth, and passing any money to their descendants.

Nobody has a problem with any of that. Many of us have a problem with their descendants not having to pay taxes on their payouts.

Why? It's post tax money.

Not when it changes hands. Otherwise why should I pay taxes on the money you give me to change your oil?

NP. Well…yes. That’s how gift money works. Otherwise, why shouldn’t you be paying income tax on the cash value of the sweater your aunt got you for Christmas

Why should only “gift” money work that way? Why not all money? I have to pay taxes on the $2 tip your your aunt “gave” me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

One is wages from a business to an employee in exchange for working for them; the other is a gift between family members, as a gift.

Why is one type subject to taxation and one type not subject to taxation?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

One is wages from a business to an employee in exchange for working for them; the other is a gift between family members, as a gift.

Why is one type subject to taxation and one type not subject to taxation?

Why not appeal to your congressman for all gifts, monetary and otherwise, to be treated as taxable income? Have you tried that yet?

[Anonymous]

Anonymous wrote:I haven't read the thread, but it looks like OP has just discovered there are rich people and it's not fair.

BINGO

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

One is wages from a business to an employee in exchange for working for them; the other is a gift between family members, as a gift.

Why is one type subject to taxation and one type not subject to taxation?

I think it’s because of the exchange of goods or services for money. That’s why like, you can’t sell me house cleaning for $1 and then accept a $199 gift, if the IRS determines that it was really part of the payment for the service. It’s not the transfer, it’s the exchange. I’m not a lawyer though but that’s my understanding. Otherwise everyone could just pay $1 for everything and then gift tax free up to the $19k to everyone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

NP. Why just rich kids? If you want to tax gift money, you’re talking about some poor kid’s $50 graduation gift too.

Not necessarily -- even W9 income has a limit from any individual payer before it gets reported to the government, and that limit is higher than $50.

I've been the beneficiary of some very generous gifts from my late grandparents and my parents over the years. It was obviously better for me that I didn't have to pay taxes on that, but it was also obviously unfair. I wouldn't argue at all if someone wanted to change the law (though I think we all know that law will never be changed). I don't see how anyone could argue otherwise unless they just don't want to think for even a half a second about the moral implications of being given money just because of who your parents happened to be.

I am in the same boat but also feel strongly that money which has already been taxed, sometimes twice (Income and cap gains) should not be taxed a third time via a gift to my offspring. If there is any loophole to close it's the step up in cost basis upon death - exclude businesses and farms.

I feel the money that you already paid taxes on, sometimes twice (income and cap gains) should not be taxed a third time when you give it to me to: clean your house, or cut your hair, or serve your food, or write your will, or perform your colonoscopy, etc.

My cleaner accepts venmo. Whether she claims it as income is up to her. I'd be willng to bet MANY Americans DON'T pay taxes on some of the income you described. Additionally, my kids are not a business. They are my dang offspring.

I am paying for a service aka a business. My kid is my kid. I can gift my cleaners 19k if I want, I could gift my Dr 19k if I want. They wouldn't need to pay taxes on it either.

You know the 19k thing isn’t a god-given right. Us poors could in theory vote for enough congress people to change it. More of us than there are of you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a very normal and human thing to use your resources to take care of your own offspring

Not adults! The “normal” human behavior is for adults to take care of their aging parents. I know 40-something’s who get allowances from their 70 year old parents. 😝

Most of these people are stunted professionally because they relied financially on their parents.

So, OP, I support my elderly parents, should they have to pay income tax in the money I give then each month?

Should the elderly childless who work as Wal Mart greeters to keep themselves in cat food half to pay taxes on the income Wal Mart gives them each month?

NP. Is Walmart gifting them the money, or is it their wages?

What is the difference in your mind?

One is wages from a business to an employee in exchange for working for them; the other is a gift between family members, as a gift.

Why is one type subject to taxation and one type not subject to taxation?

I think it’s because of the exchange of goods or services for money. That’s why like, you can’t sell me house cleaning for $1 and then accept a $199 gift, if the IRS determines that it was really part of the payment for the service. It’s not the transfer, it’s the exchange. I’m not a lawyer though but that’s my understanding. Otherwise everyone could just pay $1 for everything and then gift tax free up to the $19k to everyone.

I’m not talking about the legality, I’m talking about the reasoning for the legality.