a proposed deduction

[ShyCat]

meanwhile there are 6.7 billion human beings all entitled to the ordinary personal exemption of $3,800/year. do the math.

Are you now claiming that the US population is 6.7 billion?

By the way, that's not even the correct number for worldwide population; you're about 4 years behind. Do try to keep up.

 

[Proserpina]

Are you now claiming that the US population is 6.7 billion?

By the way, that's not even the correct number for worldwide population; you're about 4 years behind. Do try to keep up.

Dang, I'd heard about a population explosion but you'd think somewhere along the line we would've noticed the addition of how many billions of Americans?!

 

[LdiJ]

wrong. employment income is taxed twice, in that there is F.I.C.A. (social security)and local wage taxes that dont apply to investment income. and because investment income can be distributed to any shareholder pro-rata to their inherent deductions, leaving a zero overall tax. the problem is you dont understand even the beginning of what im talking about: changing items of income does not change the nature of the income.

meanwhile there are 6.7 billion human beings all entitled to the ordinary personal exemption of $3,800/year. do the math.

answer to question from other thread- because i like irritating you and the other fake lawyers. and because im scratching all over with poison ivy and cant leave the house. when it dries up, i ll be too busy to stay online.

You work for a company and receive a salary. The employer reports that salary to the IRS at the end of the year. That W2 triggers a taxable event. Any money placed in a trust is AFTER TAX income. Yes, a trust itself can earn income, but the W2 money that you would want to place in the trust would be already taxed or taxable.

And where do you get the idea that there are 6.7 billion human being entitled to the personal exemption? There are not 6.7 billion people in the world subject to US income tax, therefore there are not 6.7 billion people entitled to a US personal exemption.

There is no mechanism where you can make what you want to happen, actually happen.

 

[anteater]

the problem is you dont understand even the beginning of what im talking about...

Unfortunately, we all do understand.

 

[anteater]

You work for a company and receive a salary. The employer reports that salary to the IRS at the end of the year. That W2 triggers a taxable event. Any money placed in a trust is AFTER TAX income. Yes, a trust itself can earn income, but the W2 money that you would want to place in the trust would be already taxed or taxable.

And where do you get the idea that there are 6.7 billion human being entitled to the personal exemption? There are not 6.7 billion people in the world subject to US income tax, therefore there are not 6.7 billion people entitled to a US personal exemption.

There is no mechanism where you can make what you want to happen, actually happen.

C'mon, LdiJ. You are taking the OP far too seriously.

 

[anteater]

Dang, I'd heard about a population explosion but you'd think somewhere along the line we would've noticed the addition of how many billions of Americans?!

Approximately 6.365 billion.

Dang, why haven't I thought of using those furriners' personal exemptions before! Let's see.. There's Jean Cote from up in Quebec. And Sean O'Malley from Dublin. Bertie Dickens in Manchester. Jose Maria Acedo from Barcelona...

 

[Proserpina]

Approximately 6.365 billion.

Dang, why haven't I thought of using those furriners' personal exemptions before! Let's see.. There's Jean Cote from up in Quebec. And Sean O'Malley from Dublin. Bertie Dickens in Manchester. Jose Maria Acedo from Barcelona...

Hey, I know Bertie Dickens!

I mean granted, I could never forgive him for supporting City over United, but nobody is perfick, right?

 

[anteater]

Hey, I know Bertie Dickens!

I mean granted, I could never forgive him for supporting City over United, but nobody is perfick, right?

An exemption is an exemption, right?

 

[Proserpina]

An exemption is an exemption, right?

*shuffles feet.

Well, yeah.

But in that case we have to include ALL of my relatives in Blighty. And there are many.

 

[tranquility]

I, and people far smarter than I, who actually know the law, spend most of our working day planning on how to change things to tax advantage.

Trusts and the like seem a ripe area for manipulation.

Then, less smart people (but those with access to what smart people are doing), make new rules, laws and regulations to prevent the manipulation of events to avoid taxes. That's why I often laugh at those who think a "flat" tax is easier or more fair. Every tax law class starts with the question, "what is income?". Law professors get great joy from embarrassing those who think they know. It's all in how you word it.

Here, the trust theory is worn out for what the OP proposes. Not only does he not seem to have a keen grasp of what he is trying to accomplish, but also it seems he is uncertain as to what the rules are on the matter. This is a no brainer and would probably not much confuse even the first-year auditor.

 

[davew128]

I know beagles with greater understanding of tax law.