Posted on 06/17/2021 2:42:35 PM PDT by packagingguy
All part of the leftist/globalists’ CAMPAIGNS to ELIMINATE AMERICA’S “KULAK CLASS”.
Blackrock has no choice. They have sooo much money they don’t know where to invest it fast enough.
First problem is the home is not yours. Children have sold homes or thrown out parents. Second, below market sales among relatives brings in the IRS.
"Internal Revenue Service frequently watches transactions among family members and can step in and levy taxes if something doesn't look right."
https://pocketsense.com/sell-house-child-25510.html
What about the middle class whose only source of their wealth is their house? You’re assuming they have the brains and the extra money to put their house into a trust. There’s just no excuse for what the govt is planning here. This will slowly decimate what’s left of the middle class that has done “the right thing” all their lives.
I AM a CPA, and neither of your “solutions” would work. The IRS sees undervaluations like you suggest all the time and they destroy them in audits. Losing the step-up in basis is a big deal, as that’s the current key to avoiding most of the estate tax. The best evasive action under a Biden plan would be to not file any documents upon death and hope the IRS doesn’t notice, but that won’t solve your problems if they DO notice. Note I said “evasive” not “avoidance”. Under current law, the biggest mistake I see clients make is transferring parent’s property to their names while the parents are living—they just screwed themselves out of the step-up.
We are VERY middle class my mom is 92 and we just put her house into a trust it cost us $1000.00 to do this!! Her home is paid off and being in CA. the home is now worth $950,000.00! Well worth the $1000.00 for an attorney to do this!!!
And if the children are the type who would throw the parents out of the home, then why would the parents leave anything to them anyway?
At an absolute minimum the wealthy individual should be gifting $15,000 a year (tax free to both parties) to all relatives (or any other individuals) that will be in the will.
If the wealthy person lives a long time (say 20 years plus) that avoids a _lot_ of taxes for everyone.
They probably should gift a lot more than that, because the gift is not taxed by the recipient and they can include any extra amount in their lifetime gift exemption.
2. I worked for a professional firm that was set up as a closed corporation where the owners bought and sold shares internally at a steep discount. My understanding is that the IRS wouldn't have had any reason to destroy them in an audit because shares of the firm were worth far less to them internally than they would be on an "open market" because of all the ownership restrictions in place. It's not like any of the shareholders had the option to go out and sell their 5% of the company to Warren Buffett.
It all became moot when they sold the company years later. The capital gains taxes became due for all of the owners at the time the firm was sold. I'm sure they all paid a lot in capital gains taxes because their cost basis was very low due to the internal valuation method they used.
"Tax experts slam Biden's mess of a 'double death' tax"
FR: Never Accept the Premise of Your Opponent’s ArgumentPatriots are reminded that the states have never expressly constitutionally given the unconstitutionally big federal government the specific power to make laws dealing with life and death issues, the Founding States reserving such powers uniquely to the states.
"10th Amendment: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
"[…] the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Federal Constitution, is in the States, and not in the Federal Government [emphasis added] [emphases added].” —Rep. John Bingham, Congressional Globe, 1866. (See about middle of 3rd column.)
”From the accepted doctrine that the United States is a government of delegated powers, it follows that those not expressly granted, or reasonably to be implied from such as are conferred, are reserved to the states, or to the people. To forestall any suggestion to the contrary, the Tenth Amendment was adopted. The same proposition, otherwise stated, is that powers not granted are prohibited [emphasis added].” —United States v. Butler, 1936.
The remedy for the corrupt, unconstitutionally big, post-17th Amendment ratification federal government that is oppressing patriots under its boots…
Trump's red tsunami of patriot voters need to primary federal and state candidates who don’t clearly promise to help put the federal government back into its constitutionally limited power "cage.”
Exactly. I should have added then to my suggestion in other posts for the parent(s) to sell the home while they are still alive.
My mother quit-claimed 1/2 of her house to me. She passed away and that made me the sole owner.
Didn’t cost a penny.
Our plan was for the surviving spouse to sell it right after the other one passes. That way the basis is stepped up to market value and capital gains are set to zero.
Does that dodge you suggest really work?
This is horrible for my clients, most will pay this damn double tax. We will most likely start using insurance to pay the tax bill so we can keep the family farm and businesses in tact.
This statement is only correct to (current) $250k profit per individual / $500k both spouse-owners for 2 of 5 years as primary residence. Beyond that PROFIT amount or outside of the above time frame, there IS CAPITAL GAINS on the transaction profit!
“You will own nothing and you will be happy.”
There is never any discussion of indexing to inflation. Government causes inflation, then taxes the ‘gain’ caused by inflation while the purchasing power nose dives. Stealing!
This will drive capital to who-knows-where? Stupid. Typical.
Bkmk
If the Marxist Democrats break the Senate filibuster, and it looks like Joe Manchin is going to switch for a sufficient price, then they will nationalize elections and they will matter no more here than in North Korea. We are on the edge of a national dictatorial police state.
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