Rupp, Webb, and Cain are said to come from affluent families. Most tennis and golf players are from relatively wealthy families.
I think there may be a flaw in your logic. Many people better themselves in spite of family money. And playing a sport for a living probably doesn't qualify as bettering.
taxman wrote:
"How do you plan on "passing it down?" The IRS limits cash gift contributions to $14,000. That's nice but would cover rent for about 6 months."
Wrong. You can gift up to 5.45 million in your lifetime. If you are married, your spouse can also gift 5.45 million. So you can gift almost 11 million TAX free.
The 14k limit is how much you can gift without filing the anything on your taxes and without lowering your lifetime gift limit.
As an example. Lets say you gift 1 million dollars to your child. You need to add this to your tax return. No taxes are due by you or your child. However, when you die, now you can only give away 4.45 million tax free. Everything after 4.45 million has the gift tax applied to it. Give away a million to another child, then you still have 3.45 million left on your life time limit. (That 5.45 million is subject to change. Last year it was 5.43 million. It could go way down or up going forward.)
Get it.
With the 14k. Each parent can give 14k per donee, and you can give away to child's spouse as well. That's 56k a year per married child without taxes and without affecting your lifetime limit. If they have children, you can gift to them as well.
Good job repeating what I just said 10 posts ago in a post 5 times as long.
Could be anywhere from $0 to about $4 million combined from parents and in-laws. I can't plan on the amount or when it would come so I just live my life as if it will never happen.
The spoils wrote:
Rupp, Webb, and Cain are said to come from affluent families. Most tennis and golf players are from relatively wealthy families.
I think there may be a flaw in your logic. Many people better themselves in spite of family money. And playing a sport for a living probably doesn't qualify as bettering.
Depends how you define affluent
I would say most distance runners came from above average (in USA) public high schools and/or private schools. Parents usually upper-middle class and have saved to put kids to college
Poorer schools tend to have track teams where there are zero distance runners but perhaps great sprinters, baseball, football and basketball players
phidipidippides wrote:
So you can gift almost 11 million TAX free.
Depends where you live. I believe some states have lower limits.
Nevertheless, inheritance/estate tax have ridiculously high limits in the US (some countries in Europe have limits as low as $200k).
That said, the money has already been taxes (income tax, capital gains tax, whatever,...) so why should it be taxed again? Bernie Bro's would probably disagree...