so a family member has a 200k capital loss carryover and also owes me a lot of money. Can I gift them an asset with a 200k capital gain (to cancel out the tax gain) then just have them gift me back to settle the debt? essentially taking advantage of their capital loss.
can i gift to someone who has a massive capital loss but also owes me money?
byu/KnowledgeTop173 intax
Posted by KnowledgeTop173
5 Comments
Feel like its pretty straight forward but this would be like 500k being passed around is that some kind of red flag?
Doesn’t sound like a gift.
But how would doing this settle your debt? All it would do is make you owe tax on the disposal of your assets. The family member would still owe you what they owe you.
I like the way your brain works but no, of course not.
Step transaction
You could marry them.