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Obama Family Tax Shelter - (First family transfers wealth, avoids taxes)
Washington Free Beacon ^ | April 13, 2012 | Free Beacon Staff

Posted on 04/13/2012 1:48:15 PM PDT by Beaten Valve

President Obama and his wife, Michele, gave a total of $48,000 in tax-free gifts to their daughters, according to tax records made public on Friday.

The president and his wife separately gave each daughter a $12,000 gift under a section of the federal tax code that exempts such donations from federal taxes.

There is nothing illegal about the president’s taking advantage of this tax shelter, but it does raise eyebrows given that he has lamented the myriad tax exemptions used by the wealthy—“millionaires and billionaires” like himself—to pay less in taxes. He has yet to propose a comprehensive plan to reform the byzantine tax code.

The Obama’s tax return indicates that the gifts, likely for their daughter’s college educations, began in 2007, when the maximum exemptible amount was $24,000 per couple. The maximum exemption has since increased to $26,000 per couple.

The Obamas paid a total federal tax rate of 20.5 percent on a gross adjusted income $789,674, which would typically fall within the top federal rate of 35 percent. According to an analysis of the president’s tax return, he may have paid a lower rate than his secretary despite making more than eight times as much money as she did.

His most recent tax proposal—the so-called “Buffett Rule”—would increase taxes on about 4,000 millionaires and raise about $4.7 billion in new revenue per year, enough to cover about 0.4 percent of the projected budget deficit in 2012. Though the rule would apparently not hit the president himself.

Supporters of the rule have acknowledged that the projected revenue from the “Buffett Rule,” which the Democratic-led Senate is expected to vote down, is “not even a meaningful small amount.”

The Obama’s untaxed gift to their daughters will leave American taxpayers to subsidize the college education of the children of the multi-millionaire Obamas


TOPICS: News/Current Events; US: District of Columbia
KEYWORDS: buffetrule; incometax; irs; obamasfairshare; obamastaxes; obamastaxloopholes; taxreturn

1 posted on 04/13/2012 1:48:21 PM PDT by Beaten Valve
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To: Beaten Valve

Beverly Hillbillies had way more goin on then this trash...


2 posted on 04/13/2012 1:53:14 PM PDT by gibsosa
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To: Beaten Valve

Tax loophole for the wealthy...(as creep-in-chief would say)!

They need to pay THEIR “FAIR SHARE”!

I wonder why he didn’t just pay more and skip the loophole since he lectures the rest of us on how to run our lives? /s


3 posted on 04/13/2012 1:59:57 PM PDT by kcvl
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To: Beaten Valve

Oh, so this is what those 99%’ers have been protesting about...people like the pResident

Barry IS the 1%

Just because a tax deduction is there...doesn’t mean you have to use it.

Barry hates the Poor


4 posted on 04/13/2012 2:00:17 PM PDT by libertarian27 (Check my profile page for the FReeper Online Cookbook 2011)
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To: libertarian27

“...doesn’t mean you have to use it.”

I would use it. But then, I’m not the one criticizing people for using it.


5 posted on 04/13/2012 2:04:22 PM PDT by Flightdeck (If you hear me yell "Eject, Eject, Eject!" the last two will be echos...)
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To: Beaten Valve

BHO: Don’t do as I do, do as I say! I’m above you because I live on a hill and I can see all you slaves from my White House.


6 posted on 04/13/2012 2:09:34 PM PDT by Calif4Palin (President Palin sounds so good....)
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To: Beaten Valve

We want to see the expense account for all the trips....We’re not stupid....Even the dog lives a lot better than us HARD WORKING FOLKS.


7 posted on 04/13/2012 2:10:24 PM PDT by Sacajaweau
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To: Beaten Valve

The president and his wife separately gave each daughter a $12,000 gift under a section of the federal tax code that exempts such donations from federal taxes.
++++++++++++++++

Very misleading statement. Obama gets no reduction in taxes from this transaction. It is hs daughters who have no tax obligation.


8 posted on 04/13/2012 2:11:23 PM PDT by InterceptPoint (TIN)
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To: Calif4Palin

I looked at his return to see what huge deductions he took to lower his rate so much. He also must have a giant home loan because he deducted thousands from his interest payments on his mortgage. He also deducted thousands for real estate taxes he pays on his mansion.


9 posted on 04/13/2012 2:14:12 PM PDT by tell me
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To: Beaten Valve
So the Bari-The-Hustler pays a lower tax rate than his secretary and uses the same "loop-holes" and "tricks" those evil rich people use to avoid the tax man!

What a pompus jerk.

More power to him but don't be bashing those that do the same as you!

10 posted on 04/13/2012 2:14:12 PM PDT by TexasCajun
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To: TexasCajun

Thugbama has to go!!! WTF is this? Kenya? oh wait . . . . .


11 posted on 04/13/2012 2:17:23 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: Beaten Valve

Gee. I wonder if later the kids can give the money back?


12 posted on 04/13/2012 2:23:19 PM PDT by afraidfortherepublic
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To: Beaten Valve

Why doesn’t he give us all the greatest tax free gift possible....his immediate resignation?


13 posted on 04/13/2012 2:25:36 PM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: tell me

The ‘C’ in Washington D.C. stands for ‘C’rooks. So it is Washington Der Crooks....


14 posted on 04/13/2012 2:26:42 PM PDT by Calif4Palin (President Palin sounds so good....)
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To: Beaten Valve

Anyone know how much they gave to charities?


15 posted on 04/13/2012 2:29:41 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Beaten Valve
The Obamas paid a total federal tax rate of 20.5 percent on a gross adjusted income $789,674, which would typically fall within the top federal rate of 35 percent. According to an analysis of the president’s tax return, he may have paid a lower rate than his secretary despite making more than eight times as much money as she did.

A guy who thinks a family of four can't live on $162,000 a year probably reckons he needs those loopholes to survive. Without them he'll have to start subletting rooms in the White Hut.

16 posted on 04/13/2012 2:34:43 PM PDT by JustSayNoToNannies (A free society's default policy: it's none of government's business.)
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To: gibsosa

what tax exemption is this?....I thought those gifts to children or adult children were NOT tax deductible for the giver?....


17 posted on 04/13/2012 2:38:21 PM PDT by cherry
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To: Beaten Valve

Yeah! Do as I say Not as I Do! Fing little Commie!


18 posted on 04/13/2012 2:41:40 PM PDT by mongo141 (Revolution ver 2.0, just a matter of when, not a matter of if!)
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To: JustSayNoToNannies

...............A guy who thinks a family of four can’t live on $162,000 a year probably reckons he needs those loopholes to survive. Without them he’ll have to start subletting rooms in the White Hut. ...................

Good point. You did notice that he also cashed in $2,968,000 of US Treasury notes (for almost no gain).

Must be expensive foe the Wookie to buy all those disgusting designer frocks and Gucci boob belts, even though he gets free housing, free food, free booze, free servant/slaves, free transportation, free vacations, free childcare.

I wonder how much there is left to steal from the White Hut this December for his Chitown digs, after Hitlery and Bozo cleared out the Smithsonian furniture warehouse and silver pantry in 2000.

Maybe there will be something left to send to his half brother for his cardboard box in Kenya.


19 posted on 04/13/2012 2:50:08 PM PDT by Noob1999 (Loose Lips, Sink Ships)
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To: Beaten Valve
The president and his wife separately gave each daughter a $12,000 gift under a section of the federal tax code that exempts such donations from federal taxes.

This story makes no sense. If you give more than the limit you have to fill out form 709, but it looks like the Obamas' gifts were below the yearly limit so no tax form at all would have to be filed.

20 posted on 04/13/2012 3:03:21 PM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: Beaten Valve
The Obama’s untaxed gift to their daughters will leave American taxpayers to subsidize the college education of the children of the multi-millionaire Obamas

This also makes no sense. Money in the kids' accounts counts for more than money the parents have when calculating any student aid. Also, the Obamas are rich enough anyway that I don't expect that they would get any federal college aid unless they get it the "Chicago way", in which case silly things the peasants have like paperwork or income statements won't matter anyway.

21 posted on 04/13/2012 3:10:10 PM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: KarlInOhio
This story makes no sense. If you give more than the limit you have to fill out form 709, but it looks like the Obamas' gifts were below the yearly limit so no tax form at all would have to be filed.

I think the Obamas might have purposely kept their gift under the tax threshold. Isn't that illegal...structuring or some such?

22 posted on 04/13/2012 3:15:55 PM PDT by Dianna
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To: Don Corleone

Why doesn’t he give us all the greatest tax free gift possible....his immediate resignation?
-——————————————————————————————Unfortunately it would be no better with Biden with the exception that he would screw up so badly that our misery would probably end this Nov.


23 posted on 04/13/2012 3:19:11 PM PDT by bytesmith
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To: Beaten Valve

I know that one can gift up to $12,000 to anyone without the recipient paying taxes.

I don’t think that such a gift exempts the giver from paying taxes on the income in the first place.

I would like clarification, please.


24 posted on 04/13/2012 3:22:02 PM PDT by ridesthemiles
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To: ridesthemiles

I don’t think that such a gift exempts the giver from paying taxes on the income in the first place.


In general that is true. If you give cash, it is after tax income. But you can give $12,000 of stock and the basis/purchase price and tax liability would go to the person receiving the gift.


25 posted on 04/13/2012 3:35:22 PM PDT by PeterPrinciple (Lord, save me from some conservatives, they don't understand history any better than liberals.)
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To: KarlInOhio

This story makes no sense. If you give more than the limit you have to fill out form 709, but it looks like the Obamas’ gifts were below the yearly limit so no tax form at all would have to be filed.


But in a high profile situation, you would still file the form to document the gift even if less than the required amt.


26 posted on 04/13/2012 3:40:21 PM PDT by PeterPrinciple (Lord, save me from some conservatives, they don't understand history any better than liberals.)
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To: gibsosa

These gifts help minimize inheritance taxes later on.


27 posted on 04/13/2012 3:45:21 PM PDT by chopperman
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To: cherry
what tax exemption is this?....I thought those gifts to children or adult children were NOT tax deductible for the giver?....

They are probably talking about UGMA (Uniform Gift to Minors) or the ability to pass money for a college education to a minor child. In each case, the parents do have to pay their normal tax rate on the money now, but the minor children do not have to pay any taxes on the money as it is a gift. AND, more importantly, it is not subject to the limit placed on how much you may pass to your heirs before the death tax kicks in.

The Obama family could keep the $48,000 in their own accounts, have it grow to something like $1.6 million, then will it to the children upon their deaths some 35 or 40 years from now. Consequently, this money would be subject to the death tax where the federal government will take at least 1/3 ($500,000) and a state government may take another significant percentage. Instead, the Obamas chose to avoid those taxes by pre-paying this money to their children now.

The kids still get the money, the Obamas pay $10,000 in taxes now, and the kids get to avoid $500,000 in taxes later.

Neat scheme, if you can afford it. And if you have Uncle Sam picking up the bill for every least little thing in your life (like housing, food, vacations, gardening, care for your mother-in-law, care for your illegal-alien aunt, etc, etc), you probably could easily afford stuff like this.

28 posted on 04/13/2012 3:57:09 PM PDT by Stegall Tx (Living off your tax dollars can be kinda fun, but not terribly profitable.)
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To: Beaten Valve

Newt could make hay of this - Romney will probably ignore or fluff it even though Obama is characterizing him as one of the eeeevul rich dudes.


29 posted on 04/13/2012 4:07:37 PM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: ridesthemiles

I think the deduction is because they are putting the $24,000 into a college fund, not giving the money directly to the girls.

But I might be wrong.


30 posted on 04/13/2012 4:24:40 PM PDT by savedbygrace (But God.)
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To: savedbygrace

I think you are wrong...it’s a GIFT...the parents are directing it to college funds it sounds like, but they could have given them the money to buy clothes...it doesn’t matter. And, as someone else pointed out, yes, it can help in reducing INHERITANCE TAXES....something the Obomba’s talk about having a need for, and here they are AVOIDING them! Tax AVOIDANCE is legal....Tax cheating is not.


31 posted on 04/13/2012 4:49:06 PM PDT by goodnesswins (2012..."We mutually pledge our Lives, our Fortunes, and our Sacred Honor")
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To: goodnesswins

Of course it’s a gift, specifically a 529 (c)(2)(b) Tuition Trust gift. IOW, tuition being placed in a trust as a gift.

http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._529._Qualified_tuition_programs


32 posted on 04/13/2012 6:02:31 PM PDT by savedbygrace (But God.)
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To: goodnesswins

http://www.briskelderlaw.com/pdfs/College-529%20Plans.pdf


33 posted on 04/13/2012 6:04:40 PM PDT by savedbygrace (But God.)
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To: tell me
He also must have a giant home loan because he deducted thousands from his interest payments on his mortgage. He also deducted thousands for real estate taxes he pays on his mansion.

I don't understand it. How did he avoid AMT?
34 posted on 04/13/2012 6:56:20 PM PDT by PA Engineer (Time to beat the swords of government tyranny into the plowshares of freedom.)
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