Complete Grift

I have always enjoyed this scene from The Shawshank Redemption (1994), especially since it is pure grift.  The tax advice given by Andy Dufresne is total hokum, and Dufresne had to know it was hokum.  Guard Captain Hadley is being paranoid about taxes.  He doesn’t owe any tax on the 35,000 he inherited, because the Federal Estate tax would already have been paid prior to distribution and his inherited funds are not subject to income tax, other than on interest accumulated on principle subsequent to the death of his brother, and that was probably paid by his brother’s Estate.  In any case, a gift tax transfer to his wife would not solve any tax problems that existed prior to the transfer.  However, a gift tax return would allow Dufresne to state on the return that there was no tax owed in regard to the transfer, which would have mollified the paranoid, and uncomprehending, Hadley.  Of course a gift tax transfer to a spouse makes no sense since there is no limit to the amount of funds that can be transferred between spouses.  Thus Dufresne gypped the toughest guard in the prison into buying three beers apiece for Dufresne and his colleagues for worthless advice.  Of course if Hadley had caught on, Dufresne could have been taking a mortal header off the roof he was tarring, but Dufresne doubtless thought it was safe to bet on Hadley’s ignorance and cupidity.

Bonus: