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And to be clear given the business I’m in I benefit from the large exclusion and step up but that doesn’t mean I feel it’s right.
Yes, I feel the same. My wife and I will benefit from stepped-up basis, and our kids will also likely benefit.
IMO, this is just another lollypop that has been given to people of privilege who throw money at politicians. The messaging to the masses is phrased in terms of passing a house or a farm down to their children. If that were the true motivation there could be a provision to pass along a relatively modest amount of assets completely free of taxation. Allowing unlimited amounts to escape income tax just because someone dies is not right in my estimation.
Capital gains already receive favorable treatment in the tax code. A joint return pays zero tax on LGCT up to roughly $100k in AGI, and above that it's a 15% tax (plus possibly the Medicare surcharge) up to incomes of roughly $500k.
Yes, I must sound like a far left person, but I'm not. IMO, the well off in this country have lost all sense of fairness. Plenty of the people posting here (including myself) have benefited greatly from the economic system in this country. Expecting them (us) to pay some of that back in the form of taxes is not unreasonable.
Actually, yes I did. The step up rule is extremely beneficial to the vast majority of those who inherit investments.Just because you don't agree with my argument does not mean I didn't make one.
That’s not a valid argument against taxing the cap gains. Simply saying it’s beneficial isn’t an argument
[quote-2 And my example had nothing whatsoever to do with feelings, just the facts regarding her particular case. It improved her retirement picture immensely, and I believe that's a good thing, because that's the next crisis this country is going to have - a retirement crisis.[/quote]
No it’s just feelings because you didn’t establish any rational basis to not apply taxes. Your response was just about what’s better for said person which is feelings based
As an example, a family friend whose father passed away last year left her about $220,000 worth of several stocks he had owned for decades, which she inherited under the step up rule. She's 53 years old, single, and still has two kids, ages 16 and 18 at home, makes about $30-$35K, has a mortgage, has very little money in the bank and a very low 401K balance, maybe $25K. At that level, the $220K in stocks she inherited is going to go a LONG way to helping her catch up, and if she's smart, will set her up in a place where she might actually be able to retire at some point.
Sorry, people like this are not the ones who benefit from the stepped up cost basis.
Yes, the inherited stocks help her a lot. But let's look at reality. Let's say the stocks double by the time she is retired. Pulling 4% a year comes to about $18,000 annually. At FRA her SS benefit might be $15k-$18k annually. Add in another couple thousand dollars a year from the 401k (just to be optimistic), and her federal tax bill is ZERO, even if 100% of the stock sales are gains.
Yes, it is. Isn't that why we do many of the things we do?? Isn't that why I plan to have something to leave to my kids, because it will be beneficial to them?? If not, please let me know because if it's not beneficial to them, I may as well just go spend it on hookers and booze, right?? Please.
And besides, I haven't heard you provide an adequate argument as to why the capital gains SHOULD be taxed. What's your reasoning for demanding it be taxed?? Because the government can use that money to somehow benefit society as a whole? Good luck with that! I prefer to hand off my stepped up investments so I can ensure the benefit of my family directly rather to to see it go into the black hole of government spending.
As I said, death should not be a taxable event. Ever.
The amount of welfare abuse and fraud that goes on with almost zero concern from the government doesn't make me feel bad trying to pay as little taxes as possible or supporting tax cuts whenever they come about. One of my ____ gets disability, welfare, etc yet flies first class to Vegas 2-4x per year, goes to expensive music festivals and plays at tables with limits I wouldn't even do. Posts on social media about everything... why on Earth is he getting all this welfare, medical care, disability, etc. He isn't the only person I know who clearly doesn't need welfare, yet gets it. As a wealth manager, you should be trying to get your clients to pay as little as possible.
Yes, it is. Isn't that why we do many of the things we do?? Isn't that why I plan to have something to leave to my kids, because it will be beneficial to them?? If not, please let me know because if it's not beneficial to them, I may as well just go spend it on hookers and booze, right?? Please.
Well besides you being emotional about this I don’t gaf about your benes or family as it’s irrelevant. Why should your benes get a full transfer with zero tax implications? Also of not your personal gain is irrelevant
Quote:
And besides, I haven't heard you provide an adequate argument as to why the capital gains SHOULD be taxed. What's your reasoning for demanding it be taxed?? Because the government can use that money to somehow benefit society as a whole? Good luck with that! I prefer to hand off my stepped up investments so I can ensure the benefit of my family directly rather to to see it go into the black hole of government spending.
As I said, death should not be a taxable event. Ever.
Cap gains are additional income or increase in value and there’s zero reason it should go untaxed. That’s as simple and basic of a reasoning and so to you tell me why it shouldn’t be taxed
The amount of welfare abuse and fraud that goes on with almost zero concern from the government doesn't make me feel bad trying to pay as little taxes as possible or supporting tax cuts whenever they come about. One of my ____ gets disability, welfare, etc yet flies first class to Vegas 2-4x per year, goes to expensive music festivals and plays at tables with limits I wouldn't even do. Posts on social media about everything... why on Earth is he getting all this welfare, medical care, disability, etc. He isn't the only person I know who clearly doesn't need welfare, yet gets it. As a wealth manager, you should be trying to get your clients to pay as little as possible.
Welfare abuse and or fraud has nothing to do with this topic. While important are you unable to separate issues that aren connected?
Cap gains are additional income or increase in value and there’s zero reason it should go untaxed. That’s as simple and basic of a reasoning and so to you tell me why it shouldn’t be taxed
But you still haven't given us a reason WHY they SHOULD be taxed. Saying they should be taxed without giving a reason is just YOUR feelings.
We'll just have to agree to disagree. Have a nice day.
Welfare abuse and or fraud has nothing to do with this topic. While important are you unable to separate issues that aren connected?
I haven't been following yet another argument you started with a member because you start so many on a daily basis, yet rarely if ever give insights to how you are investing or trading, but from the gist of what little I've scanned, you seem to be upset about people not wanting to be taxed more on their investments?
I haven't been following yet another argument you started with a member because you start so many on a daily basis, yet rarely if ever give insights to how you are investing or trading, but from the gist of what little I've scanned, you seem to be upset about people not wanting to be taxed more on their investments?
Yeah, crazy how most of us don't just line up at the local IRS field office to hand over blank checks, isn't it? Maybe LE is actually AOC incognito....the handle would certainly be appropriate lol.
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