Is taxing inherited money double taxation or taxing new gains? (illegal, solution)
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"The Congress shall have power to lay and collect taxes on incomes,
from whatever source derived, without apportionment among the several
States, and without regard to any census or enumeration."
As much as I am against a "death tax", I have no argument against it.
Absolutely double taxation..I also think tax on a used car is double taxation as taxes were paid on the full new retail price when first owner bought it and for that matter anything taxed on a resale is double taxation...imo
Absolutely double taxation..I also think tax on a used car is double taxation as taxes were paid on the full new retail price when first owner bought it and for that matter anything taxed on a resale is double taxation...imo
the problem is that the "estate" has already been taxed..at least twice, once when the income and savings was initially made, and also any investment (interest) income
and the "estate" is EVERYTHING
prior to 2000, the estate level on the fed side was 600k, it was 100k on THE STATE SIDE, you got killed especially from new yrok state
yep I said 100k..that means all assests over 100k were taxed at 55%...meaning if the estate was ONLY the basic house your dad had, valued at 500k (the basic house here on long island) then NEW YORK got you for 55% of 400k (500k minus the 100k exemption)meaning you got hit with a 220k tax bill..THAT HAD TO BE PAID WITHIN 90 DAYS...it wasnt just the fed that was hurting, it was the states too
now it is 1 mil, on both sides the fed, and the state. but still, intodays age 1 mill is nothing for an estate...(your basic house is 500k, (more if you kept it up to date), then the CONTENTS of the house, then any investments dear old dad might have made, dont let the government know he has a coin colection, becuase they will VALUE it at the highest level, just to hit you for that 55%)
the average FAMILY farm is well over 4-10 million in VALUE, meaning that the federal AND state governments will get 55% of 3-9 million
It's actually ZERO right now on a federal level.
Less than 3% of all estates exceed 3.5m. Most anything, family farm or otherwise does not meet that threshold.
This issue is tough for me. It's clearly new income to the receiver. It has also likely already been taxed. Of course there could be some unrealized gains that have not been taxed.
The best thing to do is plan to avoid as much taxation as legally possible.
Less than 3% of all estates exceed 3.5m. Most anything, family farm or otherwise does not meet that threshold.
This issue is tough for me. It's clearly new income to the receiver. It has also likely already been taxed. Of course there could be some unrealized gains that have not been taxed.
The best thing to do is plan to avoid as much taxation as legally possible.
It's "double taxed," but it's also essentially a gift of assets and wealth to another individual.
Had daddy dearest given his progeny gifts of 5 million each in LIFE, that GIFT to the children would have been TAXED as income to the children, regardless of the fact that daddy's money was already taxed once.
It's "double taxed," but it's also essentially a gift of assets and wealth to another individual.
Had daddy dearest given his progeny gifts of 5 million each in LIFE, that GIFT to the children would have been TAXED as income to the children, regardless of the fact that daddy's money was already taxed once.
For those knowledgeable legal folks...there must be a legal way to transfer ownership or money into corporations/holdings (maybe during life) to avoid the money grabbers from taking and redistributing to whose wanting handouts?
For those knowledgeable legal folks...there must be a legal way to transfer ownership or money into corporations/holdings (maybe during life) to avoid the money grabbers from taking and redistributing to whose wanting handouts?
One of the tricks that a lot of wealthier people do - in addition to trusts, etc. - is to buy life insurance for the estimated amount of inheritance tax they will pay. When they die, the life insurance kicks in and that is used to pay the tax. But it is expensive ... around $1.5 million for $10 million in insurance.
It's a "gain" and should be taxed just like receiving the items in other manners.
It's pretty simple people.
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