*IRS has entered the chat* h/t
Conversation
Since people in the comments aren’t saying it while shaking their head at how wrong this is, I’ll say it - the parents/board of directors have to pay the tax from the 1099 income. The gift is not deductible from taxable income; it’s only deductible if given to a charity.
3
30
This will work like a charm for you but your parents will be left with a nice tax bill.
2
15
Parents make less in this example. Marginal tax rates, baby!
1
2
In the unlikely event your parents have no other income, and depending on which state they're in, they potentially could earn ~$12k/yr income tax free and gift it to you.
Personally, I would be buying bitcoin while waiting for the student loan debt jubilee rather than paying.
It just needs to be a different marginal tax bracket. But yes.
1
Show more replies