Estate taxes also include businesses do they not? People are being forced to sell their businesses because of the taxes they would pay if they leave that business to a child. I worked for a company in the BR area that was sold just because of this......Is that not happening? I don't know how much my dad has but I know his estate shouldn't be taxed at all on his death.
If it's on the transfer of the estate....what about the income I received of $3.5 million. I don't have to pay taxes on that at the highest rate?
Nope. Any thing (money and property) you receive as gift or inheritance, you (the receiver) don't pay any federal tax. Exception: If you inherit a traditional IRA (or tax-deferred retirement account), you are called a beneficiary. Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive. So the funds that were transferred to your account are not taxable. And you don't pay tax on the appreciation unless the gain is realized. That is, you pay tax on interest, dividend, or gains when you sell the stocks. More answers are here: THE ESTATE TAX: MYTHS AND REALITIES
I guess there is an extremely small chance this could happen, but the number of family owned business's that are large enough to pay the tax is so small that is hardly worth mentioning. I would say that if someone is a responsible business owner they would not have such a large percentage of their worth tied up in non-liquid investments, and then this problem does not exist. As a conservative, personal responsibility is something I value.
Heard Obama on the radio today."We need to tax the wealthy and give it to the poor" Jeez, we will never learn.We have seen the enemy and the enemy is ...us
Are you telling me that's exactly what he said? How about a link? Because even if he believed it, he wouldn't have said it, and I'm pretty sure that you're taking it out of context.
id think its very common, even for successful businesses. all theyd have to do to pay the taxes is take out a loan against the business---as long as they have good cash flow, they dont need to pay the total. hey, what happens if you inherit a business in the red? do you get money back? i guess maybe you can subtract it from gross income. sort of like tippy the turtle putting a helium ballon in a package, bringing it to the postoffice, and demand they pay him money.
Read that link red posted a few spots up. Only a few hundred family owned businesses are large enough to have to pay the tax. I am grasping at straws here, but I would assume the opperating loss of the business would be considered seperately from the worth of the assets which is what would be the basis for the inheritance tax. I am of course assuming the inheritance tax would be based soleyly on the balance sheet and not on the Profit and Loss. Suppose GM was a family owned business. They just had a 38 billion dollar loss but the value of the assets is a couple of hundred billion. I don't know how the operating loss would come into play. If the owner died and passed it on to his kid. Houtiger is the CPA. He should chime in and serve me.
