Author Topic: Future US tax policy  (Read 9095 times)

Offline aygart

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Re: Future US tax policy
« Reply #150 on: October 17, 2020, 11:16:46 PM »

I think basis step-up at death will go away.


The big issue with step-up going away will be the need to find the decedent's paperwork which isn't always so easy for the estate to access. I can tell you from experience that there is no way I would have possibly figured out basis for many assets from my parents or my aunt.
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Offline ExGingi

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Re: Future US tax policy
« Reply #151 on: October 17, 2020, 11:44:14 PM »
The big issue with step-up going away will be the need to find the decedent's paperwork which isn't always so easy for the estate to access. I can tell you from experience that there is no way I would have possibly figured out basis for many assets from my parents or my aunt.

Granted. But that is often the case with a sale during lifetime of property held for a long period (think personal residence).

Interestingly, in Israel they seem to use an inflation adjustment to calculate (offset) gains, so one doesn't pay a tax on a nominal "gain" that is attributable to inflation.

BTW, in 2010, the year when there was no estate tax, basis step-up was limited to 1.3MM IIRC.
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Offline PlatinumGuy

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Re: Future US tax policy
« Reply #152 on: October 17, 2020, 11:50:54 PM »
The way US politics work, it's hard to see too many loopholes being removed. What's more likely to happen is raising the top line rates while creating ever new workarounds for the senators and their friends. In any case, taxes aren't going up until inflation hits us, and then we have bigger problems than tax.
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Offline ExGingi

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Re: Future US tax policy
« Reply #153 on: October 18, 2020, 12:19:17 AM »
The way US politics work, it's hard to see too many loopholes being removed. What's more likely to happen is raising the top line rates while creating ever new workarounds for the senators and their friends. In any case, taxes aren't going up until inflation hits us, and then we have bigger problems than tax.

I beg to differ. We are much more likely to see higher taxes than inflation.
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Offline PlatinumGuy

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Re: Future US tax policy
« Reply #154 on: October 18, 2020, 12:28:43 AM »
I beg to differ. We are much more likely to see higher taxes than inflation.
The government doesn't need to raise taxes when they can fund themselves by printing money which they've been doing painlessly. It's called selling debt to the fed. The government won't slow down the printing until they have to. The only force causing them to stop is inflation or the threat thereof.
Whenever you find yourself on the side of the majority, it is time to pause and reflect - Mark Twain

Offline ExGingi

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Re: Future US tax policy
« Reply #155 on: October 18, 2020, 12:48:24 AM »
The government doesn't need to raise taxes when they can fund themselves by printing money which they've been doing painlessly. It's called selling debt to the fed. The government won't slow down the printing until they have to. The only force causing them to stop is inflation or the threat thereof.

Tell us about how this has worked in Japan over the last couple of decades.

Did you read the quotes from Lacy Hunt in the article I posted?

Unless what you are calling inflation is some kind of deliberate great reset (just like Nixon did), it's not just about "printing money".
« Last Edit: October 18, 2020, 12:51:31 AM by ExGingi »
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Offline aygart

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Re: Future US tax policy
« Reply #156 on: October 18, 2020, 01:04:17 AM »
Granted. But that is often the case with a sale during lifetime of property held for a long period (think personal residence).

Interestingly, in Israel they seem to use an inflation adjustment to calculate (offset) gains, so one doesn't pay a tax on a nominal "gain" that is attributable to inflation.

BTW, in 2010, the year when there was no estate tax, basis step-up was limited to 1.3MM IIRC.

Finding the cost of real estate is child play compared to a mutual fund wit reinvested dividends which moved from brokerage to brokerage to brokerage.
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Offline PlatinumGuy

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Re: Future US tax policy
« Reply #157 on: October 18, 2020, 01:07:04 AM »
Tell us about how this has worked in Japan over the last couple of decades.
When was the last time Japan raised taxes?
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Offline ExGingi

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Re: Future US tax policy
« Reply #158 on: October 18, 2020, 01:16:21 AM »
When was the last time Japan raised taxes?

Not that I follow them that closely to be aware of every tax move, but I recall a few years ago there was something about the VAT IINM.
I've been waiting over 5 years with bated breath for someone to say that!
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