Ralph A. Gerra's Answers

What does "void where taxed" mean?

Cities and states may possess broad authority to levy privilege license taxes on businesses acting within their borders. By sending a sweepstake ticket or by offerring a sweepstake to a resident of a community which has such a privilege license tax, the Sweepstake company has probably taken sufficient actions within the jurisdiction to subject itself to tax. The "void where taxed" provision is a savings clause that attempts to break the connection with the taxing jurisdiction. The sweepstake...

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The new gift tax law confuses me....can i gift up to 5 million dollars and use up my lifetime exemption???

Let's assume (1) you have not previously made any reportable gifts, (2) your gifts will be made by wire transfer of immediately available funds to other individuals and (3) you are not married. Then you can make gifts totaling $5,000,000 in 2011 and 2012 without incurring any gift tax. You must file a Form 709 (Gift Tax Return) in 2012 if the gift to any one individual in 2011 exceeds $13,000. You must file another gift tax return in 2013 if the gift to any one individual in 2012 exceeds $13,...