Posted on 03/30/2021 1:46:26 AM PDT by Libloather
Hi Cliff -
That ship has sailed. Public “servant”??!?!?!? Another oxymoron when it comes to politicians.
That’s a good point. I was keeping the estate/inheritance tax separate in my mind, and didn’t see the implications here.
I like how they call it a loophole. Why should I pay capital gains on a car that I inherited? John Kerry didn’t pay dime of inheritance on the Billions he inherited.
Time to contact this guy’s office and voice your displeasure.
Just because they cannot live within a budget does not mean they can increase the tax yoke on our necks!
That is how Trusts already work.
Parents create a Trust. They die. The cap gains in the Trust are zero, and the price basis for the stock (or the asset) is reset to the price of the stock (or the asset) on the day you died.
What this law would do is require your kids - or their Trust - to pay capital gains tax based on the price of the stock (or asset) on the day you bought it.
Among other things, this law would punish investors who buy for the long term.
Also, during your life, you never materially benefited from the increased value of that stock.
During your life you may have received dividends from that stock, but you reported that income and paid tax on it.
Boy, have you been fully indoctrinated...
“It involves a tax that must ultimately be paid anyway, and simply changes the timing of when part of it is paid.”
The power to “tax” was levied to support the Government, originally the taxes were fairly limited, then came the IRS, to remind you that ONLY the wealthy would be taxed, well that changed from a century ago didn’t it?
If we must be taxed, then establish a flat - consumption tax, because I don’t think I am getting worthwhile results in my State (from the taxes I pay), and I am suspect with what I am getting Federally either—— Equity, Critical Race Theory training, Inclusivity training, Federally funded Abortion, Gender reassignment surgery for Military “upon request”, Resettling Illegal Immigrants, and the list goes on....
Please see #5.
The current way of doing it may seem inaccurate, but it’s certainly a lot simpler than trying to guess the value that the deceased added to the inherited possessions.
Oh, they'll find a way around that by putting a time limit on it. For example they will say if something was put in a trust within 10 years of your death, that was done for the purpose of avoiding taxes, so you are going to be taxed the full amount
I did not know that - my Dad was a business owner, and he always considered the business to be his retirement income.
Just to be sure I understand...
The higher 401K-IRA tax rates apply when the retirement account is passed on to heirs, after the death of the original owner?
Somehow this will not affect the super rich who fund the democrat party.
What they don’t want to tell you is that this tax scheme affects EVERY possession that a parent owns and passes down to a descendant.
So, it doesn’t mean just stocks and bonds, or “real estate investments”. It means the primary residence and everything in it. It means the painting on the wall, that was bought decades ago direct from the artist, which might now be worth 100K. It means dad’s coin collection or mom’s stamp collection. It means the old car in the garage, once considered junk, that is now a hot collectible. It means the Luger or Japanese sword that dad brought home from the war. It means everything. Look on eBay and see what some ordinary household items are bringing, like the old electric fan that recently sold for $20K which might have cost $5 when new.
Art, antiques, and collectibles are already unfairly burdened by a special 28% “capital gains” tax rate. That isn’t enough for the tax’n’spend liberals, they want more and more and more.
True -- but that would apply to capital gains taxes in general on assets held for the long term, regardless of when and how the taxes are paid.
I don't disagree with anything in your last paragraph. Most of that has nothing to do with methods of taxation. Good luck getting any of that sh!t addressed even with REPUBLICANS in Washington.
I have a background in real estate investing, and I could work around those challenges without much effort at all.
If the proposed capital gains "reset" tax is imposed, you'd simply have a huge incentive for Grandma to sell the house BEFORE she dies -- maybe even to family members at a steeply discounted price. Voila! -- you've eliminated any concerns about improvements dating back decades and reset the value for future capital gains tax purposes in one fell swoop.
This tax should only apply to anyone who voted DEM.
**Democrats are the greediest people you’ll ever meet. On the bright side, the deceased will always have a chance of voting them out.**
But, but, but, the Dems need all of this money to bribe the voters with “free” stuff.
“ The death of generational wealth and the family owned farm”.
***************
Not just family farms; basically anything tangible, small businesses, capital equipment, RMD’s. This will not be just the rich that will be hit it will be on anyone that worked a life time building and saving.
Yup
It will kill the stock market. People will take their gains pay taxes and squirrel the money away in a trust
“It’s time to stop subsidizing massive inheritances for the rich and start investing in everyday Americans,” Van Hollen said...”
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