Biden gonna tax us to death

#427
#427
McDad said:
- Corporate rate 21->28% consumer pays
- Global min tax to 21% global makes it sound like everyone pays that amount and there's no way that happens
- Top income rate to 39.6% this income bracket will do their utmost to defer, shelter, and avoid tax
- End fossil fuel subsidies consumer pays more
- Tax investment gains > $1M as wage income increased cap gains, again this income bracket will play the game
- Tax assets passed on at death will dis proportionally hit those who are unprepared.
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A middle class killer.
 
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#430
#430
TheDeeble said:
Wtf does the govt think they’re owed a cut when parents leave their assets to their kids after they die? It not like that money hasn’t been taxed several times already.
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Humans have always considered creatures which prey on the dead to be malevolent, craven, or disgusting. Vultures, worms, maggots and other scavengers are almost vile to us. We can accurately add Uncle Sam, a ghoulish figure seeking human carrion on which to feast, to the list.
 
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#432
#432
They want to tax the unrealized gains (as ordinary not cap gain) for all assets of a decedent at the time of death. But, ask yourself how the inheritors will have the wherewithal to pay the tax? Then ask yourself, What is the value of any asset is that HAS to be sold to pay a tax? All asset values will be impaired.....all loans will be upside down, etc. The 2008 housing crisis all over again with an exponent. Democrats are playing with fire and will burn us all.
 
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#433
#433
Ernest T. Vol said:
They want to tax the unrealized gains (as ordinary not cap gain) for all assets of a decedent at the time of death. But, ask yourself how the inheritors will have the wherewithal to pay the tax? Then ask yourself, What is the value of any asset is that HAS to be sold to pay a tax? All asset values will be impaired.....all loans will be upside down, etc. The 2008 housing crisis all over again with an exponent. Democrats are playing with fire and will burn us all.
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So what happens if one takes out an interest only (if you can get such a thing) HELOC for example on his properties and when he dies they are all underwater? Would that avoid this taxation? I mean to leverage the hell out of everything?
 
#434
#434
SpaceCoastVol said:
So what happens if one takes out an interest only (if you can get such a thing) HELOC for example on his properties and when he dies they are all underwater? Would that avoid this taxation? I mean to leverage the hell out of everything?
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The IRS does not factor liabilities against the asset. Only the asset's value is considered.
 
#436
#436
SpaceCoastVol said:
How convenient for them. There will be workarounds. Might as well start working on them
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Structuring the asset as a corporation and moving shares to family over time is the easiest way. Corporation is a separate entity and doesn't pass to a family member at death. It simply changes hands.
 
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#438
#438
So here's an accounting question. I have a rental property here in Florida and we are about to sell it (Hopefully this year). It is in an LLC. Would it be advantageous to take those proceeds and use them to buy my farm in Tennessee and keep it in the LLC? IS that the exchange that you are talking about? We are planning on buying 50-75 acres or so, and are looking at a hay/tree farm kind of situation. The plan is to sell/donate the hay that comes from the property as long as the ones that want it come and get it. I have no interest in throwing hay bales at 65 years old other than to get a little exercise. I ain't Brett Favre.

I'm thinking this might meet the corporation test that McDad is talking about.

Oh... and I will have a gun range too, so come on over. Admission is one box of ammunition for the (up to) 500 yard range.
 
#439
#439
SpaceCoastVol said:
So here's an accounting question. I have a rental property here in Florida and we are about to sell it (Hopefully this year). It is in an LLC. Would it be advantageous to take those proceeds and use them to buy my farm in Tennessee and keep it in the LLC? IS that the exchange that you are talking about? We are planning on buying 50-75 acres or so, and are looking at a hay/tree farm kind of situation. The plan is to sell/donate the hay that comes from the property as long as the ones that want it come and get it. I have no interest in throwing hay bales at 65 years old other than to get a little exercise. I ain't Brett Favre.

I'm thinking this might meet the corporation test that McDad is talking about.

Oh... and I will have a gun range too, so come on over. Admission is one box of ammunition for the (up to) 500 yard range.
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I am no accountant but what I understand about those tax deferred swaps is that the properties have to be 'like' or 'similar'. I can easily swap one rental investment for another rental or one farm for another. The stipulation is the 2nd property must be higher value than the one you're exchanging. With that said, there is a fair bit of poetic license when it comes to the definition of 'like or similar'. In fact, you will find those terms are vague.

I don't know about LLC structure and if/how that effects what your asking. I understand an LLC to be a legal structure and not a tax structure. Your mileage may vary.
 
#440
#440
Ernest T. Vol said:
They want to tax the unrealized gains (as ordinary not cap gain) for all assets of a decedent at the time of death. But, ask yourself how the inheritors will have the wherewithal to pay the tax? Then ask yourself, What is the value of any asset is that HAS to be sold to pay a tax? All asset values will be impaired.....all loans will be upside down, etc. The 2008 housing crisis all over again with an exponent. Democrats are playing with fire and will burn us all.
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That kind of inheritance stupidity has apparently been part of the demise of family farms.
 
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#441
#441
McDad said:
Humans have always considered creatures which prey on the dead to be malevolent, craven, or disgusting. Vultures, worms, maggots and other scavengers are almost vile to us. We can accurately add Uncle Sam, a ghoulish figure seeking human carrion on which to feast, to the list.
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And with a zombie in the White House, it’s like the walking dead.
 
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#442
#442
McDad said:
- Global min tax to 21% global makes it sound like everyone pays that amount and there's no way that happens
.
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Not really what that means. It's a minimum tax earned by foreign affiliates of U.S. companies from intangible assets (i.e. royalties, trademarks). Now if you want to say that will raise the costs for consumers, that's a different argument. I will bet Apple will pass some of those costs on since they have the structure that this minimum tax was designed to target (currently, this mimimum tax is 10.5%, the Biden plan would double it).
 
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#445
#445
McDad said:
Structuring the asset as a corporation and moving shares to family over time is the easiest way. Corporation is a separate entity and doesn't pass to a family member at death. It simply changes hands.
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Be careful here though. If you distribute shares in the corporation that are worth more than the annual gift exemption, you would begin to utilize into your lifetime exemption. (Not an issue right now for 99% of people but under the proposed Biden plan, this could be an issue if the lifetime exemption is slashed to 2009 levels)
 
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#446
#446
There's the potential for some really bad scenarios if the stepped up basis is removed and the lifetime exemption is reduced to $1M.

Let's say my estate is stocks worth $10M. I have a basis of $500K so I have an unrealized gain of $9.5M. My estate return would be ($10M - $1M lifetime exemption) * Estate Tax Rate. At a 50% fed and state rate, that would be a $4.5M tax bill.

Let's say my heirs inherit the stock. Without a step up basis (I've already paid a 50% tax on the value of the stock at my death), they will have a $9.5MM capital gain. At a 40% ordinary rate (since its over $1MM), there would be a $3.8M tax bill on that.

My $10M is now reduced to $1.7M.
 
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#447
#447
One more example.

I die and leave @McDad my baseball card collection.

1. How do you easily and economically determine the value of the cards
2. How does McDad know my basis in the cards so he could pay the taxes on the unrealized gain?
 
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#448
#448
BigOrangeMojo said:
There's the potential for some really bad scenarios if the stepped up basis is removed and the lifetime exemption is reduced to $1M.

Let's say my estate is stocks worth $10M. I have a basis of $500K so I have an unrealized gain of $9.5M. My estate return would be ($10M - $1M lifetime exemption) * Estate Tax Rate. At a 50% fed and state rate, that would be a $4.5M tax bill.

Let's say my heirs inherit the stock. Without a step up basis (I've already paid a 50% tax on the value of the stock at my death), they will have a $9.5MM capital gain. At a 40% ordinary rate (since its over $1MM), there would be a $3.8M tax bill on that.

My $10M is now reduced to $1.7M.
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Bad scenario for you and your family. But that's the goal of Democrats. It's not some oversight or accident.
 
#449
#449
BigOrangeMojo said:
Be careful here though. If you distribute shares in the corporation that are worth more than the annual gift exemption, you would begin to utilize into your lifetime exemption. (Not an issue right now for 99% of people but under the proposed Biden plan, this could be an issue if the lifetime exemption is slashed to 2009 levels)
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The gift exemption is 10k per year?
 
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