Posted on 04/08/2014 2:20:29 PM PDT by SeekAndFind
If you're a New York multimillionaire, you now have another incentive to stay alive.
A change this month in New York's estate tax, which was billed as tax relief for the wealthy, contains a hidden wrinkle that could leave some multimillionaires with a much bigger surprise tax upon their death. Certain estates could even wind up with a tax rate of 164 percent on portions of their estates, according to one tax expert.
The changes were intended to ease the tax bill for wealthy New Yorkers and prevent them from fleeing to lower-tax states. A report from the Tax Foundation found that New York had the highest tax burden in the country as a percentage of state income. It found that New Yorkers spent 12.6 percent of their per capita income in 2011 on state and local taxes.
nstead of lowering the tax bill, the estate tax change could raise it.
"It's nonsensical," said Kevin Matz, an accountant and attorney in White Plains, N.Y. "The governor said this is about making New York a better climate for the wealthy. It's had the opposite effect."
On its face, the new law seems like tax relief. Under the previous law, New Yorkers paid estate taxes of 3.06 percent to 16 percent on the value of estates over $1 million. The new law raises that exclusion to $2.062 million this year and gradually increases it to more than $5 million by 2017.
But because the law also phases out certain credits related to federal taxes, people who have estates valued just above the $2 million threshold could get massive estate tax bills.
(Excerpt) Read more at cnbc.com ...
Dig ‘em up and put ‘em back to work until that additional 64% is paid off!
They say you can’t take it with you, but the government keeps coming up with more incentives to do so.
My sister-in-law used to say that the best thing about NYC was the Tappan Zee bridge....bypass the whole city on the way to New England.
“How can you pay more than 100%?”
It’s more than 100% of the amount that is over a particular thresold. I’m not sure if the article is clear or not, I’m too lazy to read it carefully.
But one problem with estates is valuation, your estate might be “worth” a lot of money, but if it is property (real or portable) it’s not like you’ve got that “value” in cash to pay the bill.
And who is to say how quickly or for how much any given piece of property can be sold?
I’m sure that wealthy politically connected liberals will get an exemption.
literally:
ESCAPE from NY
2 million isn’t all that rich, by any stretch. A nice house, two working spouses with modest investment portfolios and IRA’s and that covers a hell of a lot of people.
All you have to have is a house in Westchester county, an IRA, some savings and life insurance and you are paying this confiscation of wealth tax. Screw this state. Starve the beast. Everyone leave now while you still have money in your hands.
Cuomo does not even own a house in NY. He lives with his bimbo.
Will the last working New Yorker please turn off the lights when you leave?
There are many of us left, but in our case, not any longer than need be.
My kids have all left and once mr. mm can retire, I want out, too.
Soon enough, though, I will have to escape from the United States.
My best advice ? if you can handle the hot weather and tornadoes ? move south.... like South Carolina.
Think Virginia. I am paying 1/3 the property taxes I paid in NY. We still have 4 seasons, the snow is really at a minimum and if you stay away from the coast the real estate prices are reasonable and you don't have to worry about hurricanes.
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