Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Selling it to what partner? If there is a partner, that can be done, or whoever inherits the business can sell it, but nevertheless the proceeds of such a sale would become part of the tax free inheritance here in Canada...Why do you have such an interest in stuffing your government's coffers?
I'm not arguing for any change in your tax laws, as I could care less because I am not effected by them.
What you are saying sidesteps the giant issue. It is not what you do with the proceeds any transfer it is the transfer it self that is the issue.
Its not that hard to comprehend, you just don't like it. If you sell your share of your business to your partner, the government is going to tax the transaction. If you give your business to your kids the government does not get to tax the transaction. How is that not picking and choosing which transactions and transfers you want to give favoritism to? Also in specifics why is it beneficial economically to giving such favoritism.
The fact is getting rid of the estate tax is just exhibiting tax favoritism. Now there are certainly moralistic arguments against the estate tax, but unlike other favorable tax treatment like transfers in furtherance of a trade or business there is no sound economic logic for taxing transfers for consideration, but not taxing gratuitous transfers.
Inheritances are fine, people should be free to do whatever they like with their money, however inheritances should not get special tax treatment for no conceivable reason other then they are inheritances and taxing them is wrong. Simply put inheritances and gifts should be taxed so that you do not have to tax transfers for value more to pay for the loss of revenue that comes from not taxing inheritances and gifts.
Last edited by Randomstudent; 08-22-2012 at 02:55 PM..
What you are saying sidesteps the giant issue. It is not what you do with the proceeds any transfer it is the transfer it self that is the issue.
Its not that hard to comprehend, you just don't like it. If you sell your share of your business to your partner, the government is going to tax the transaction. If you give your business to your kids the government does not get to tax the transaction. How is that not picking and choosing which transactions and transfers you want to give favoritism to? Also in specifics why is it beneficial economically to giving such favoritism.
Not at all true..tax will be due on the capital gains not only if it is sold to a partner, or whoever...The very same would apply to my kids...They would also be taxed on the capital gains because no previous tax has been paid on them.....You are entitled to your opinion, as am I...I like the tax rules here that apply to me and mine.
You really should get your facts straight before making such assumptions.
I heard a conservative claim that most liberals believe inheritances should be illegal. I told him that I was sure he was mistaken, and that the argument is over inheritance taxes on very large estates, not simply inheritances themselves.
Who's right? And should it be illegal to inherit money?
I think those who believe it should be AND are willing to attempt to force it should be hung.
Not at all true..tax will be due on the capital gains not only if it is sold to a partner, or whoever...The very same would apply to my kids...They would also be taxed on the capital gains because no previous tax has been paid on them.....You are entitled to your opinion, as am I...I like the tax rules here that apply to me and mine.
You really should get your facts straight before making such assumptions.
So in Canada your kids pay capital gains taxes on the accessions to wealth from gifts, bequests, and devises? Even if they do not realize said gains? That sounds like an estate tax all but in name only. That is not the case in America. People who acquire wealth by gift pay no income taxes on it here.
Last edited by Randomstudent; 08-22-2012 at 03:25 PM..
I heard a conservative claim that most liberals believe inheritances should be illegal. I told him that I was sure he was mistaken, and that the argument is over inheritance taxes on very large estates, not simply inheritances themselves.
Who's right? And should it be illegal to inherit money?
I think there is a difference between handing someone billions of dollars in which they will never have to work and aren't creating any jobs, and handing someone a small business that was built from the ground up.
Difference between old money, and new money. I think that we should end the inheritance tax where we can show its creating jobs, and increase it where we can see it isn't.
The Kardashians are an example of money that should be taxed, at an extremely high rate.
I think there is a difference between handing someone billions of dollars in which they will never have to work and aren't creating any jobs, and handing someone a small business that was built from the ground up.
Difference between old money, and new money. I think that we should end the inheritance tax where we can show its creating jobs, and increase it where we can see it isn't.
The Kardashians are an example of money that should be taxed, at an extremely high rate.
But with your last statement you're allowing subjective, personality based conditions to determine tax code.
So in Canada your kids pay capital gains taxes on the accession to wealth from gifts, bequests, and devises, because that is not the case in America? People who acquire wealth by gift pay no income taxes on it here.
I was under the understanding that gift tax was applied in America, I wasn't aware that there was a lifetime exemption in excess of 5 million, but it seems that the exemption mainly applies to spouses...
Gifts to Nonspouses
Currently federal law also exempts the first $13,000 of gifts made to anyone other than a spouse from the federal gift tax, which is an increase from the $12,000 exemption that was available in 2008. This dollar amount is referred to as the annual exclusion from gift tax.
For example, if a father makes a one time gift of $113,000 to his son for the purchase of a home, then $13,000 of the gift is free and clear of the federal gift tax and the remaining $100,000 is a taxable gift. Or, if the father gifts his son $10,000 in January and then an additional $100,000 in June of the same year, then the first $13,000 is free and clear of the federal gift tax and $97,000 is a taxable gift.
But with your last statement you're allowing subjective, personality based conditions to determine tax code.
What if it's, say, Meryl Streep's estate?
No, the government has, for a long time, decided winners and losers with the tax code.
Unless we decide to level the playing field for every individual, regardless of who they are, I say we should use it to its best advantage.
If its proven that you aren't creating money with your wealth, why not tax the **** out of you?
I'm actually in favor of a flat tax, and end all inheritance taxes, corporate taxes, whatever. But until the day that becomes a reality, we should use the progressive system to its full ability. And taxing money that isn't creating jobs is a good way to encourage job creation with that money.
Same theory holds true with child tax credits and home owner tax credits. Because you are essentially growing the tax base and creating demand, which creates jobs, that money is creating more jobs then its preventing.
I was under the understanding that gift tax was applied in America, I wasn't aware that there was a lifetime exemption in excess of 5 million, but it seems that the exemption mainly applies to spouses...
Gifts to Nonspouses
Currently federal law also exempts the first $13,000 of gifts made to anyone other than a spouse from the federal gift tax, which is an increase from the $12,000 exemption that was available in 2008. This dollar amount is referred to as the annual exclusion from gift tax.
For example, if a father makes a one time gift of $113,000 to his son for the purchase of a home, then $13,000 of the gift is free and clear of the federal gift tax and the remaining $100,000 is a taxable gift. Or, if the father gifts his son $10,000 in January and then an additional $100,000 in June of the same year, then the first $13,000 is free and clear of the federal gift tax and $97,000 is a taxable gift.
I don't see what this has to do with what I said, but you have to be crazy rich to pay federal estate taxes here. I am simply taking about having efficient taxes that are as neutral as possible.
I don't see what this has to do with what I said, but you have to be crazy rich to pay federal estate taxes here. I am simply taking about having efficient taxes that are as neutral as possible.
So, gifts over $13,000 to a son or daughter are taxed, but not gifts to a spouse....Have I got that right? Estate tax has an exemption in excess of 5 million, which is fine for the average Joe, but how about a farmer or small businessman who's estate is worth more than that, but it is all in land, buildings and equipment...Can his heir afford to pay the tax, or will he be forced to sell it? If the latter is that really fair?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
