Posted by Tim Fierro (Tacoma, WA) on March 14, 2002 at 02:54:44:
If he is ‘GIVING’ you the money, then what tax hit are you taking? Solution: sell your personal property (last week’s tv guide) to him for $275k as a collectible. 
What to do with my money? - Posted by Matt
Posted by Matt on March 14, 2002 at 01:32:00:
Hi Bill…I’ve been spending the last several days reading your articles and have found them very helpful, but then I stumbled across this forum and couldn’t pass up the opportunity to go straight to the horse’s mouth…not that you’re a horse of course! Anyway, here’s the deal: In July I will be receiving approximately 275K from a friend who is just giving me the money to do with whatever I want. Yes, really. I would like to know the best way to ‘receive’ this money (I can almost hear the groans when people read about this “problem”)to minimize the tax hit I know I’m going to take. I know that 10K of it can be a ‘gift’, but what about the rest? Is there a way to treat it as a ‘0% loan’ that I have to pay back $1/year to a corporation that I’ve set up or something? I would ultimately like to figure out a way to make my living from real estate investments. At this point, I’m leaning more towards buying multi-family housing and going the owner-occupant route at first at least instead of flipping…any thoughts on that? I’m single and I don’t really want to get into business-relationship with my friend or anyone else at this point, so would you suggest that I start a single-member LLC or what? I know I’ve rambled, but I’d really appreciate your advice. Thanks so much.