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Nebrfarmr
Veteran Advisor

Re: A single 160 acre farm....

Don't forget his 3 houses he mentioned several times, you know, just like the other 47%ers have.

There was also mention of paying for land, without buying it, which leads me to belive there is some kind of estate tax shelter (or straw purchace) going on, which I find amusing coming from someone who keeps wanting to pay more taxes, but doesn't because no one will let him.

Well, good news, the House has passed HR6410, which would allow him to voluntarily pay extra income tax, with no penalties.   Maybe this will be enough to get Kraft-t to vote Republican.

Text of bill:http://www.govtrack.us/congress/bills/112/hr6410/text

Excerpt:

‘SEC. 6097. DONATION TO PAY DOWN NATIONAL DEBT.

‘(a) General Rule- Every taxpayer who makes a return of the tax imposed by subtitle A for any taxable year may donate an amount (not less than $1), in addition to any payment of tax for such taxable year, which shall be deposited in the general fund of the Treasury.

‘(b) Manner and Time of Designation- Any donation under subsection (a) for any taxable year--

‘(1) shall be made at the time of filing the return of the tax imposed by subtitle A for such taxable year and in such manner as the Secretary may by regulation prescribe, except that--

‘(A) the designation for such donation shall be either on the first page of the return or on the page bearing the taxpayer’s signature, and

‘(B) the designation shall be by a box added to the return, and the text beside the box shall provide:

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
‘By checking here, I signify that in addition to my tax liability (if any), I would like to donate the included payment to be used exclusively for the purpose of paying down the national debt.’, and 

 

 

By the way, some guys going through Romney's tax returns found out that he didn't list his full legal deductions, and he voluntarily overpaid his taxes by a bit.  Can anyone here, who criticizes him, for not paying enough, say that?

 

From New York Times article:  http://economix.blogs.nytimes.com/2012/09/25/republicans-champion-voluntary-taxes/

 

-snip-  Mitt Romney released his final tax return for 2011, showing that he voluntarily overpaid his taxes by taking less of a deduction for his charitable contributions than he was permitted   -snip-

 

Although it does appear to be a political move, so that his claim of paying a certain amount of taxes would be true (the not citing all deductions)    http://www.nytimes.com/2012/09/22/us/politics/under-pressure-romney-offers-more-tax-data.html?hp 

 

-snip-

Mr. Romney’s tax return for last year showed just how sensitive a political matter his wealth and tax rate has become. In a bit of reverse financial engineering, he and his wife, Ann, gave up $1.75 million worth of charitable deductions, raising his tax payments significantly.       

Had he claimed all the deductions to which he was entitled in 2011, his effective rate could have dipped to near 10 percent, contradicting his past assurances that he had never paid below 13 percent.

-snip-

 

schnurrbart
Veteran Advisor

Re: A single 160 acre farm....

They don't count until you sell them

Jim B. in Iowa
Senior Contributor

Re: A single 160 acre farm....


@schnurrbart wrote:

They don't count until you sell them


 

 

 

I don't think so....I believe estate taxes are figured on your net worth the day of your death.  Of course, it can depend on whether its listed in a spouses name, etc. 

Nebrfarmr
Veteran Advisor

Re: A single 160 acre farm....

Been through all that when my dad in law passed away a couple years ago, the accountant said that the proper thing to do, was to have everything assessed at what the fair market value would have been at the time of death, and that would be the value of his estate.  All assets are to be counted, there is no delaying capital assets until sale.

Of course, there are ways around it, like buying land in others' name, or putting it into a trust, etc.  Putting it all into a spouse's name, does nothing except delay the value of the estate, until the spouse dies, although if you have a large estate, and a good lawyer, they can juggle the numbers, and step up the basis so that less or no taxes are due, as well.  In fact, in the case of a couple with over a million dollars in assets, that would be the unwise thing to do.  Spouses can inherit anything tax free, but then that asset goet onto their net worth.  So, if the estate tax kicks in at $1 million, and spouse #1 dies, they can will everything to spouse #2, tax free.  However, if spouse #2 dies, they pay on everything.

Now, if they compute it so that half it spouse #1s, and half is spouse #2s, then the amount of the estate that can pass tax free, is $2 million, or $1 million for each spouse.  The trick is, getting the paperwork all done right.  In the case of my dad in law, the entire estate was well under the limits, so they put everything they could under him, and my mother in law's estate, will only be the gains from that point forward.

kraft-t
Senior Advisor

Re: A single 160 acre farm....

You worry a whole lot more about my estate than I do. If i was concerned I would commit hari kari during 2012.

 

The one million estate exemption is favored by no one dem or republican but if it should happen it is not Obamas fault. Place the blame directly on the congress of a decade ago and the president of that era.

 

The only reason we don't have a solution clearly defined is because the obstructionist refused to yield on any tax legislation. Your concerns are the product of the republican hardball position. The failure to compromise has unexpected consequences.

Jim B. in Iowa
Senior Contributor

Re: So you admit you are one of the 3%ers?


@kraft-t wrote:

You worry a whole lot more about my estate than I do. If i was concerned I would commit hari kari during 2012.

 

The one million estate exemption is favored by no one dem or republican but if it should happen it is not Obamas fault. Place the blame directly on the congress of a decade ago and the president of that era.

 

The only reason we don't have a solution clearly defined is because the obstructionist refused to yield on any tax legislation. Your concerns are the product of the republican hardball position. The failure to compromise has unexpected consequences.


 

 

 

I don't worry about it, I just point out your misstatements and laugh at what you preach being deployed back on yourself. 

kraft-t
Senior Advisor

Re: So you admit you are one of the 3%ers?

I didn't admit anything. If I owe any estate tax, it will be paid out of the estate.  My children will not pay anything. My property is mine and I will pay any estate tax out of my assets.

Jim B. in Iowa
Senior Contributor

Re: So you admit you are one of the 3%ers?


@kraft-t wrote:

I didn't admit anything.

 

 

 

 

Of course you don't....that would require a shred of decency and honesty. 

GreaTOne_65
Senior Contributor

Re: A single 160 acre farm....

When Romney loses, he can amend his taxes to include some contributions he didn't declare, and lower, last years taxes to UNDER, 5%.

Nebrfarmr
Veteran Advisor

Re: A single 160 acre farm....

I read they would go down BY 5%, to something just under 10, rather than down TO 5%, but either way, I think it says more about the current tax code that favors the rich fat cats, than it does any individual who is just following the law as written.