Skip to comments.Obama Family Tax Shelter First family transfers wealth, avoids taxes
Posted on 04/13/2012 10:14:00 PM PDT by NoLibZone
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 presidents taking advantage of this tax shelter, but it does raise eyebrows given that he has lamented the myriad tax exemptions used by the wealthymillionaires and billionaires like himselfto pay less in taxes. He has yet to propose a comprehensive plan to reform the byzantine tax code.
The Obamas tax return indicates that the gifts, likely for their daughters 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 presidents tax return, he may have paid a lower rate than his secretary despite making more than eight times as much money as she did.
(Excerpt) Read more at freebeacon.com ...
Taxes are for the serfs not for the Monarchy.
Pray for America
this is a non-issue. Whom are they supposed to give gifts to?
They are stuck with being unable to transfer their assets just like everyone else. They have a million dollar lifetime exclusion each, but that gifting is best reserved for grandchildren. and they aint got none yet.
It would be a non-issue if he wasn’t continually preaching millionaires need to pay more taxes then he avoids them. Massive hypocrisy is an issue.
Pray for America
Do as I say! Not as I DO!
I’ve certainly got no love for Obama but he didn’t avoid any tax by doing this. It’s perfectly legal to gift people money and doesn’t gain the donor any tax advantage whatsoever since the gift isn’t deductible.
Obama had to pay taxes on that $48k. It just wasn’t taxed again when he gave it to his daughters. I don’t think gifts should be taxed at all.
how is gifting considered “avoiding taxes”?
“how is gifting considered avoiding taxes?”
It is legally circumventing estate taxes.
I agree that it is a non-issue..... They paid income taxes on this money - it wasnt a deduction...
They just avoided additional gift taxes by not giving more....
Are critics saying we should pay higher gift taxes????
I hate to say anything in favor of the liar-in-chief, but in this case, facts are facts.
I should have said:
They just avoided giving additional taxes in the form of gift taxes...
It’s always the same in any Marxist oligarchy - taxes are for the proles; dachas, limousines, foreign travel and other such privileges are reserved for the commissars.
The issue is the 'Hypocrisy'.
As noted by many here, the gifting is legal and there’s no tax advantage by doing so except that it transfers $48k out of Obumo’s estate.
Thing that strikes me is that he could have done $52k. His tax advisor sucks. Geithner maybe?
What happened to all those tax $ that was paid to her ‘aides’ her kids when they traveled?
how is gifting considered avoiding taxes?
“It is legally circumventing estate taxes.”
I guessing the point is that, the Obamas are strong supporters of dramatically increasing the estate tax, so for them to circumvent it in any way could be construed as hypocritical.
Thanks DJ MacWoW for posting this:
“I guessing the point is that, the Obamas are strong supporters of dramatically increasing the estate tax, so for them to circumvent it in any way could be construed as hypocritical.”
The Obamas are BS peddlers of the first order, and this gimmick (while legal) hardly makes him look like someone who feels he should contribute to the common pot.
since, he is not dead, there are no estate taxes.
And this would be a non-reportable event, why is it on his 1040? If he filed a gift tax return 706, it would be on there. This is poor journalism.
But what else is new.