Eff this commie coup.
I only remain physically to torture them.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 12/03/2009 11:51:04 AM PST by MaestroLC
The House votes 224-199 to cancel a one-year repeal of the estate tax, set to begin next month, and instead permanently extends the current tax, with a top rate of 45 percent on estates larger than $3.5 million.
Ordinarily, an asset must be valued at its "fair market value " on the date of death (or alternate valuation date). If the samll business value is at least 50% of the value of the decedent's gross estate, it may qualify for "special use valuation" which, as of 2009, could reduce estate taxes by as much as $450,000.
There are catches, however.
How long before they ban living trusts?
Regarding your house, probably not a good idea to put it in the kids name. Currently if you sell the house you can deduct $250,000 for one owner and $500,000 for two owners from any capital gains value tax you would owe the government. When you die, your children inherit the property at the value it is on the day you die. If it is under $3.5 or $7 million they will not owe capital gains if they sell it soon thereafter.
Your remark about someone worth $3.5 Million is hardly relevant.
Do try to pay attention. :)
No way, Emocrat is perfect!
“...you can draw from the cash value without repaying or paying taxes...”
Not true. My father had to take a bit of money from his life insurance plan and paid a whopping big amount for taxes!
Life insurance policies payouts are tax-free, since they are legally and financially considered an "equal value replacement". This is why life insurance is an essential part of the "rich and famous" estate-tax planning. Also explains why insurance companies, on average, but not vocally, are not in favor of eliminating estate tax.
not quite ... they (Life insurance proceeds) are non taxable up to the 3.5 million estate value (2009). That which exceeds 3.5 million is taxable at the 45% or higher rate.
A 4 million dollar policy, assuming there was zero other assets ....(not likely, few insurance companies would write a policy that size without assets) would have 500,00 taxable at 45%
Thanks for your replies.
That’s true for large policies only if they are owned by someone other than the insured. Kids, trust, partnership, etc.
Eff this commie coup.
I only remain physically to torture them.
Yes, life insurance policy generally should not be “owned” by an insured or be a part of his taxable “estate”.
I think the analysis is wrong, but I can’t prove it.
When there is a tax on an amount “over a limit”, it generally applies to the amount over the limit.
It would be rare for a tax to be applied such that a person who inherited 3.5 million would actually end up with MORE money than a person who inherited 3.6 million.
Of course, the estate tax is mostly another jobs program for lawyers.
What sort of business are you in?
Farmers and small business-people can’t do that.
How does Farmer Brown move his 3000 acres overseas?
How does Joe the Plumber move his local customer base overseas?
“I think being a member of the Bar should EXCLUDE you from serving in the Legislative branch.”
Now, that would wipe out one heckuva part of the House and Senate, wouldn’t it?
Not that there is anything wrong with that.
These people are just beggin for it!
Financial analysis and information technology.
And your point is well taken. The heart and soul of this country is its agricultural backbone.
I would recommend selling up, and going Galt.
If South Africa is any model, and it is, the collectivists will starve themselves to death in under a single growing season.
Do not grow food. Do not harvest. Do not feed.
Let the parasites know what it is to do, or die, without the endless patience and help of the productive host of the American Right.
I knew a lawyer who was a partner in a decent sized law firm which did a lot of tax work for businesses. He was explicit that his entire practice was devoted to protecting his clients' assets from the government. Pure and simple. He was a busy man, and one of the "good lawyers" I have known.
And I desperately hope & pray that the American sheeple, will vote these demoRAT bastards out of office, and GIVE THEM THEIR WISH!!! DemoRATs generally are re-elected about 99% of the time with margins of 60-65% or better. The average American voter is dumber than dirt to keep voting these traitors in election after election, until the demoRAT literally falls over dead... aka Fatso Ted Kennedy and awaiting nearly comatose & incoherant Robert Byrd to finally kick the bucket. In the meantime he & other mega-term demoRATs keep on getting elected no matter what they do, say, get caught in bribery or corruption, or how they vote. Unbelieveable!!!
The confusion stems from applying and trying to compare two different classes of taxes to the same estate, which is what this bill is going to eliminate. That's just one of the reasons (not the moral one) why estate taxes and the probate process should be eliminated completely, and why good estate / trust lawyers are worth their hefty fees.
Of course, the estate tax is mostly another jobs program for lawyers.
That, in addition to ability of the state to intrude into people's lives and financial behavior, about sums it up.
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