# Do I need a tax attorney, or a CPA? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [September 27, 2016, 6:49pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060 "2016-09-27T18:49:36Z")\ **Posts on this page:** 8\ **Page:** 2

**Author:** ![watchwolf49](https://avatars.discourse-cdn.com/v4/letter/w/e9c0ed/32.png) [@watchwolf49](https://boards.straightdope.com/u/watchwolf49)\ **Post date:** [September 28, 2016, 5:41pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/21 "2016-09-28T17:41:41Z")

Just an observation … if the OP is willing to just give this money away … then they’ll not be hurting to run this by a tax attorney. I suggest the OP insist it’s a gift, because he loves them. If they want to pay it back, fine, but it’s because they love him right back. If things don’t work out, well, it’s the love that counts first and foremost. ---

**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [September 28, 2016, 5:49pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/22 "2016-09-28T17:49:47Z")

> [@DrDeth](#): > > So? If you give your kid his $20 allowance\* that\* is _a transfer of funds_. Do you consult a professional? Over a matter of $20, probably not. You didn’t think my OP was about such at trifling quantity, did you? If I was going to loan/gift a friend or relative a few hundred or even a few thousand dollars, I probably wouldn’t worry. But larger amounts have the potential to draw the attention of the IRS; IMHO, it’s worth consulting a pro to make sure it gets handled correctly so as to avoid expensive surprises later. ---

**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [September 28, 2016, 6:03pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/23 "2016-09-28T18:03:02Z")

> [@watchwolf49](#): > > Just an observation … if the OP is willing to just give this money away … then they’ll not be hurting to run this by a tax attorney. Of course they will be hurting: consulting professionals costs significant money. And it is only worth doing if there are very substantial amounts of money involved. So OP, give us your best estimate of the amount of money involved. As to structuring it into two or more transactions that is not needed: > [@](#): > > ``` > The gift made by a US Citizen is subject to the gift tax regardless of where the asset or the recipient is. If the gift is greater than the exclusion amount (currently $14,000 to from any one person to any other in a year) it needs to be reported. You're not actually subject to the tax until your aggregate gifts exceed the lifetime cap (currently set at $5.43 million dollars). > > You don't indicate your state, but most states that have gift taxes follow the federal exclusion rules. > > ``` [http://www.expertlaw.com/forums/showthread.php?t=185720](http://www.expertlaw.com/forums/showthread.php?t=185720) ---

**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [September 28, 2016, 6:07pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/24 "2016-09-28T18:07:31Z")

> [@watchwolf49](#): > > Just an observation … if the OP is willing to just give this money away … then they’ll not be hurting to run this by a tax attorney. Why? I think that an attorney (of any kind) is really the last person you want involved here. There is no existing tax dispute. There is no desire to follow any legally questionable tax accounting strategy. And it’s a friendly situation, so there’s no desire to set up any kind of enforceable loan contract. What’s needed is a good accountant who understands the simplest way to account for a gift or a loan that involves forex and two countries’ tax codes, without undue complication or unforseen tax pitfalls. I’m not sure such people exist for personal taxes (i.e. outside the corporate world), but the gap isn’t filled by attorneys. ---

**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [September 28, 2016, 6:11pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/25 "2016-09-28T18:11:07Z")

> [@Machine\_Elf](#): > > See [gift tax:](https://www.irs.gov/businesses/small-businesses-self-employed/gift-tax) > > So an interest-free (or apparently even a low-interest) loan could trigger a tax liability. This is the kind of thing I want to get right, and it’ll be a substantial amount of money, which is why I’m looking for professional advice on how to do it and how to adequately document it - I just wasn’t sure what sort of professional to consult. The fact that it will be an international transaction is an additional complicating factor. OP is this over $28,000? OP, are you a multi-millionaire, or do you plan on being one when you die? Even if the loan is over 28000 and you decide to forgive some, it wont be a issue unless you forgive more than $28K a year. ---

**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [September 28, 2016, 6:12pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/26 "2016-09-28T18:12:40Z")

> [@PastTense](#): > > Of course they will be hurting: consulting professionals costs significant money. And it is only worth doing if there are very substantial amounts of money involved. So OP, give us your best estimate of the amount of money involved. SWAG right now would put it between $50K and $100K, but this could change with a more thorough accounting of the recipient’s available liquid assets So spending a few hundred bucks to consult with a few CPAs is pretty minor in the scheme of things. ---

**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [September 28, 2016, 6:14pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/27 "2016-09-28T18:14:30Z")

> [@SpoilerVirgin](#): > > there will be tax consequences if it is a loan, and no tax consequences if it is a gift (within gift tax rules). No, there wont, unless they pay interest. ---

**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [September 28, 2016, 6:16pm UTC](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060/28 "2016-09-28T18:16:56Z")

> [@Machine\_Elf](#): > > Not sure yet, but likely well over the gift threshold. And the timing may be challenging, possibly as early as next spring. Maybe we could do a gift (\<28K) on/before 12/31, and then do another on/after 1/1. If more is necessary, then maybe we could do a small loan after that? Or maybe not. I'm trying to do this all above-board (I don't want any legal grief, considering the amount of involved), and since the recipient would certainly intend to pay it back, for tax purposes the entire amount would very definitely be considered a loan… Sure, that should work. A gift that may or may not be repaid of $28K this year, the same next year. No tax forms or consequences then. Just dont charge interest. Get a non-recourse IOU, and then forgive what is not paid back as a gift. [Previous page](https://boards.straightdope.com/t/do-i-need-a-tax-attorney-or-a-cpa/767060.md?page=1)