DansDeals.com Forums

DansDeals Forum => Credit Cards And Finance => Topic started by: yzj on April 29, 2021, 04:39:50 PM

Title: Bidenís Estate Tax will hit frum families hard
Post by: yzj on April 29, 2021, 04:39:50 PM
https://www.wsj.com/articles/bidens-capital-gains-tax-plan-would-upend-estate-planning-by-the-wealthy-11619716044?mod=mhp

If Iím understanding this correctly this is going to be a major hit for many frum families. Take your typical middle to upper middle class elderly frum person who bought a home in Brooklyn, etc. decades ago and has a modest saving account. The proposal will treat it as if all of his assets were sold upon his death and tax all unrealized gains over $1 million. Same goes for the small family business which will need to be sold to pay the tax bill rather than have the kids continue to run it.

The premise is that itís unfair for the super wealthy to pass down multi million dollar appreciated assets to the next generation so they are going to tax all estates upon death as if they were sold with a $1 million per person exemption. That makes some sense with your average American family of 1.5 kids. But the proposal doesnít distinguish between the number of inheritants. With  your typical frum family having upwards of six, eight, or 10 children what is already a fairly modest inheritance is going to be slammed with a tax of upwards of 40% ( long term capital gains are no longer going to have favorable tax rates) on that estate before it gets divided among the kids. Time to start thinking of effective tax strategies now.
Title: Re: Bidenís Estate Tax will hit frum families hard
Post by: aygart on April 29, 2021, 04:52:40 PM
https://www.wsj.com/articles/bidens-capital-gains-tax-plan-would-upend-estate-planning-by-the-wealthy-11619716044?mod=mhp

If Iím understanding this correctly this is going to be a major hit for many frum families. Take your typical middle to upper middle class elderly frum person who bought a home in Brooklyn, etc. decades ago and has a modest saving account. The proposal will treat it as if all of his assets were sold upon his death and tax all unrealized gains over $1 million. Same goes for the small family business which will need to be sold to pay the tax bill rather than have the kids continue to run it.

The premise is that itís unfair for the super wealthy to pass down multi million dollar appreciated assets to the next generation so they are going to tax all estates upon death as if they were sold with a $1 million per person exemption. That makes some sense with your average American family of 1.5 kids. But the proposal doesnít distinguish between the number of inheritants. With  your typical frum family having upwards of six, eight, or 10 children what is already a fairly modest inheritance is going to be slammed with a tax of upwards of 40% ( long term capital gains are no longer going to have favorable tax rates) on that estate before it gets divided among the kids. Time to start thinking of effective tax strategies now.

Without having read further about this than this individual comment, it is utterly ridiculous to expect the estate to even knoow how to calculate unrealized gains. There is no way at all for inheritors to find out the basis for many assets.
Title: Re: Bidenís Estate Tax will hit frum families hard
Post by: yzj on April 29, 2021, 04:58:06 PM
Without having read further about this than this individual comment, it is utterly ridiculous to expect the estate to even knoow how to calculate unrealized gains. There is no way at all for inheritors to find out the basis for many assets.
You can bet they will codify a means into the tax code. They want to disincentivize the wealthy from holding on to their assents until death to avoid taxes so they will ensure that they are assessed at full dollar at death.