Cracking The Code is Successful!

[farmer_giles_of_ham]

While an excise tax can be based upon a privilege or upon a regulated activity, it doesn't have to be. Some excises involve neither, such as the gift tax.

yet it only applies to u.s. persons...so right there is the regulated activity.

If the gratuitous transfer of property can be taxed via an excise, then so can the receipt of property in consideration for the performance of services or the receipt of any other type of income.

it still needs a nexus: an address for one, and a public name. Its a personal tax that depends on status as well as territory. This 'receipt' only becomes "gross" by establishing the connection with the system. By declaration, and confession.

What I am repeatedly objecting to here is the notion that "things just happen". Its not the case, and can never be, that 'taxation is decreed, then creates the connection'. Of course not! Thats like saying that electricity is produced, and then connected to a house. Wrong. The connection is created, which allows the current to flow.

without a connection there is no way to get burnt.

[indago]

Shoonra wrote:
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I am sure Indago call tell us how many of these Congressmen, speaking 19 years before adoption of the 16th Amendment, voted on the Internal Revenue Code of 1954....
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Surely, you jest...

[mertensv16]

Originally Posted by farmer_giles_of_ham

yet it only applies to u.s. persons...so right there is the regulated activity.

Not so. The gift tax also applies to nonresident aliens who transfer property located in the U.S. See Section 2511(a) of the Code.

The book is a tough read but it works. Some may have to read it a couple of times, or more.
I got refunds for 2005 and 2006, and am working on my 2007.

[moishanb]

Originally Posted by valisalo

The book is a tough read but it works. Some may have to read it a couple of times, or more.
I got refunds for 2005 and 2006, and am working on my 2007.

You must be imagining the refund checks, because others on the forum, such as Shoonra, say CTC doesn't work, and you will find yourself in jail(fear) if you continue on this course. You must be drinking from the poison kool-aid stand.

Don't worry though, some of the attorney members on this forum will protect you from those imagined refund checks you received.

I hope you read my sarcasm in the comments above!

Good to hear some success, as I have found the same success.

[farmer_giles_of_ham]

Originally Posted by mertensv16

Not so. The gift tax also applies to nonresident aliens who transfer property located in the U.S. See Section 2511(a) of the Code.

it doesn't apply to the nonresident alien's taxable income was the point. The gift tax is due from the recipient, just like the estate tax is due from the heirs.

[mertensv16]

Originally Posted by farmer_giles_of_ham

The gift tax is due from the recipient, just like the estate tax is due from the heirs.

Wrong on both counts. The donor is primarily liable for the gift tax, and the estate is primarily liable for the estate tax. It's only where the IRS can't collect from these parties that it can go after the recipients. See sections 2502(c) and 2002.

[KarenM]

Originally Posted by farmer_giles_of_ham

it doesn't apply to the nonresident alien's taxable income was the point. The gift tax is due from the recipient, just like the estate tax is due from the heirs.

I think you need to do additional research as to is required to pay the gift and estate taxes.

You'll be surprised by the results.

[farmer_giles_of_ham]

you both might be right, i really dont know much about it. I did check up there on this subject, in the section about gifts and estates of title 26. I couldnt find anything that really addressed this issue. But since it is a tax...it is based on the recipients taxabiity. yes if there is taxability there then the payor can also incur liability- but the first element to create any of this is that the recipient is taxable on this type of income- like with capital gains.

there is a difference between what creates the first liability and the ensuing vicarious liabilities. Maybe a payor of gift or estates has to respond first, by law, even before the actual beneficiary (just to put some teeth into this rule), but the initial liability is based on the recipient.

so a foreigner gets capital gains profit for free, but has to pay tax on a gift?

anyway, even the transfer itself is a nexus. I understand if we are talking about a transfer tax of sorts, like the one on the county real estate level. Which is easily avoidable by choosing another mode, like forfeit collateral on a loan.

[yebliker]

True. And what is the definition in Title 26 of United States?
-Yebliker

Originally Posted by mertensv16

Not so. The gift tax also applies to nonresident aliens who transfer property located in the U.S. See Section 2511(a) of the Code.