Roosevelt's speach in Kansas

[bruce MN]

That schtick has got the same 10,000 year half life as the fam that literally disappears upon becoming subject to the inheritance tax. Gets said enough and what actually happened or will happen goes off the radar. The myth becomes accepted legend and ultimately gets woven into dogma.

It'll never stop...on either matter.

[dagwud]

Bruce, while I agree very few estates these days pay much in the way of inheritance tax but what about before the tax rates were lowered and the exemptions raised?    I remember some friends of my folks back in the early 70's that inherited some farm ground but had to sell a portion of to pay the taxes.

I see the high rate was back in 1941 when it peaked at 77%.  Here is a good site I found dealing with the history of estate taxes.  

Estate Taxes: An Historical Perspective

The site is the Heritage Foundation which I know might bother some of the left but the article seems to give a good history of our nation's past handling of estate taxes.

[bruce MN]

You say:

"I remember some friends of my folks back in the early 70's that inherited some farm ground but had to sell a portion of to pay the taxes."

I'm sure that happens quite often. Would be rare for family members to just happen to have enough cash on hand to pay the tax at any rate. If they did, it surely wouldn't be a tragedy. They'd have the farm.

But still looking for the situation where somehow the inhertiance tax took an estate down...on it's own. Where the tax somehow, on it's own, with no other encumberances on the proerty ate up the entire value of the farm. Put somebody out of business, without other considerations being involved.

It's as simple as the math not working.

[bruce MN]

Posted FYI...no endorsement or indictment., so spare me the sermon.....

http://www.tnr.com/article/politics/98233/barack-obama-teddy-roosevelt

[Samnospam]

You're supposed to pretend its 2008, congrats on not.

[BA Deere]

I think Bruce, when you say "...If they did, it surely wouldn`t be a tragedy.  They`d have the farm."  sums up too many`s opinion on the death tax.  For an heir to have to essentially "buy the farm again" by coughing up nearly $1000/acre for a farm that`s worth $5000/acre doesn`t generate much sympathy.  But this isn`t some lottery windfall, it`s a business, family.  What hasn`t been mentioned in all this is "state inheritance tax" that can be ANOTHER 5%-18% depending on the state.  Many moons ago my Mom inherited a 120 from an Aunt she had a $39,000 tax bill, this was when land was going for $3000/acre 3 years later she could`ve come half way to buying a 120 with that $39,000.  You don`t hear about forced tax sales often because the past 30 years have been fairly reasonable.  Also most gift all they can before hand.  Also if you own over say 300 acres you are in pretty rarified air to be honest about it.  Another thing is if a "large" estate has 3 or so heirs, they might just want to sell the land anyway, so it`s auctioned and taxes quitely payed.   What`s wrong about unreasonable death taxes is, the money that made loan payments were AFTER TAX DOLLARS!  I mean Jesus Christ!  How many times does each of our dollars have to be taxed?

[bruce MN]

Yeah. Crazy thing is that my marching orders from Sorros, Move-on and the mythical leadership of OWS haven't come down yet. 

So I had to improvise.

[bruce MN]

It all pretty much started out from zero as homesteaded or easement land. And now some abstracts are as thick as the LA phone book, whille others only hold a few generatoins of  pass downs docs.

But one does have to give credit to the miniscule minority of Americans who own or are sure that at some point they will own estates that are worthover $1M net. They fight the good fight, and obstufucate well enough to keep enough of the majority who don't  on their side with the best of them.

Lot's of quoting of old pa and grandpa going on here lately. One of mine said that things always work out the best all around when every generation has to make it's own money. Said it was how capitalism keeps working.

[Samnospam]

I'm sure they'll send out someone with an implant.

[kraft-t]

I'm getting weary. Those that have $7000 land today an bought it for less than $1000 per are have $6000 in gains that have not ever been taxed. There is no double taxation as much as you whine about it.

I doubt whether any farms NEED to be sold to satisfy estate taxes. For the most part, any farm can be refinanced to pay the inheritance taxes. If you inherited a $2,000.000 farm  under the old tax rates, the first million would be exempt and the second million would be taxed a 50%. Thus a $2 million property would be taxed at $500,000 or 25 %. Now explain to me why any heir could not borrow 25% percent of the value with 75% in equity? That is not even logical. Give me all the farms you have and i will gladly pay 25%  in inheritance tax. And if a husband and wife own that $2 Million farm jointly they escape all inheritance taxes. Imagine that!

$39,000 inheritance taxes on $360,000 in property and you think that is outrageous. A farmer with gross sale of grain of $360,000 will probably pay a whole lot more than $39K  in income taxes.

You do have a calculator don't you or a spread sheet? Try using them.