AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question My father could win a mal-practice law suit of around 2 million. He wants to give me $200,000. Is there a way to avoid a gift tax? Could he give me a promisory note for $200,000...then, next year say I defaulted on the loan? Would that be a way around the gift tax?
Answer Kristi,
I misread a portion of your question and need to amend my answer. If you defaulted he would have a deduction in the amount of the default, and you would have income equal to that amount.
