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Senior Contributor

Re: Come on Scott

Believe me, I understand the accounting...I have taken every step you outlined above and then some.

 

It is accountants and estate planners that also benefit.

 

However, there is something that still bothers me about taxing somthing that is technically still in your family, has not hit the market and only arises from death. Doesn't have to be land, could be stock, a business or a house.

 

When death is a taxable event and nothing has left family hands, it kinda rubs me the wrong way. Always will. The AMT tax does as well. Real estated tax kills me too. It wasn't always like this.

 

This country does not have a tax problem, it has a SPENDING problem.

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Senior Contributor

Re: Come on Scott

And....alternatively, we have taken all appropriate legal steps to minimize any inheritance tax that may arise from any death in my family.

 

However, there are some of my siblings that, even after the estate planning excersise, will not be able to afford the taxes on the farm. So as it stands, we would have to sell.

 

That stinks.

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Frequent Contributor

Re: Come on Scott

Perhaps my head is in the sand however it is apparent in your postings that you probably are not very pleased with the outcome of the recent election. I agree our country needs to spend less and it should  have begun in George W.'s time.  I support our troops completely however the funding for these endeavors was never very apparent. Please contact  your obstructive congress to realize we all need to sacrifice some to start to climb out of this hole. 

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Senior Contributor

Re: Come on Scott

Over the last 12 years I have voted both Democratic and Republican for the president of the U.S.

 

We have lost our way when it comes to spending no matter the outcome of the election.

 

We are technically bankrupt. We can't pay back the money we have already spent. We are hoping for growth that is showing no signs of happening any time soon. Congress is obstructive because they will not vote themselves out of a job. We don't live by common sense anymore.

 

We need to grow, tax and cut our way out of the problem. Growth being the key. We are doomed to failure if we don't use all three in our rescue.

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Frequent Contributor

Re: OptionEye...Nov 19th

Missed the video about estate taxes, but at the state level in Ohio estate tax starts in at $338,000. So what do you get when you put together an attorney who doesn't fully understand agricultural valuation, some mistakes in allocating assets between spouses' estates, some arbritrary deadlines, and the state of OHIO? A $20,000 theft that drags on for three years, plus attorney fees. Just for owning under 80 acres of farmland. And those of you talking about capital gains, that is a completly different tax. Estate tax is calculated on the total value of all assets at the time of death. In Ohio they even add in the full value of assets that were jointly titled with other surviving persons. Ohio's estate tax law is set to be repealed in 2013, but of course the state of Ohio is keeping everything it collects up until then, legally or not. 

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Veteran Contributor

Re: OptionEye...Nov 19th

As the old saying goes, all politics is local.  Everyone's situation is different, but I'll buy more land that I'll inherit.  The larger the estate tax exemption the more difficult it will be for me to purchase land.  In the '70's land was sold due to the estate tax but a $7 million dollar per couple exemption  is more than enough.  Just think how large farms would be if there was no estate tax.  In the last couple decades I haven't seen any farms sold due to estate taxes.  But I have noticed how few farms are purchased by farmers under age 40.  None.  About 80% of the farms in this neighborhood are rented so this might not be about farmers.  This has more to do about off farm heirs inheriting land.  A 1 million exemption is pretty low, especially when taxed at 55% beyond that.  It wouldn't bother me to see a young farmer buy land at an auction if land was sold to pay taxes. 

 

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Senior Advisor

Whenever some one dies

Their assets go to new owners.  In my case, my assets go to my wife of 50 plus years. She will have the opportunity to accept it or disclaim it in favor of our children depending on her status in life. At 85 years old she may not need to add to the asset column.

 

Thus that tax postponement that we have enjoyed for 40 years or more should become due and payable. Selling assets to satisfy taxes is no different that what the working stiff has to do each and every year. Scramble to raise the necessary funds and he doesn't get to postpone for 30 or 40 years.

 

There is nthing that says you have to tie your last dollar up in Real Estate. You can hold a few thousands in a cash position specifically for the tax payments. Or purchase alife insurance policy to cover your responsibility. If joe blow invested his every last dollar in real estate would you suggest he should be able to avoid income taxes? Same difference.

 

 

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Re: OptionEye...Nov 19th

There is at least 200% excess capacity to farm ground in prime areas so I wouldn't worry about it getting farmed.

 

Which is separate from the issue of what is the least destructive way to raise revenue.

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Re: OptionEye...Nov 19th

I sure wish the Fed would quit desperately trying to hold up the value of wealthy people's assets- then they wouldn't have to worry about stuff like this.

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Honored Advisor

Re: OptionEye...Nov 19th

I'm not sure where you think that farmers postpone 40 years of tax......Most every farmer pays some sort of tax every year.  Just because your land has aprreciated in value over the years doesn't mean that you have gotten out of paying taxes for that long.

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