**** me, so my dad is getting this inheritance and retiring in the same year, they pay taxes on the estate of 50%, then my Dad's pays income tax on the inheritance.



Now, he's getting all the money in equities... well most of it. Soooooo, apparently you don't pay taxes on it until you sell the stocks, but we're pretty much lost, gotta go to a lawyer and figure out how to do this without loosing most of it to taxes.



Now let's take a second here and figure it out, my Great Uncle was taxed when he made the money, he was taxed when he died at 50%, now my Dad will be taxed at 38%. Anyhow we're having this lawyer figure out the best way to keep it from getting taxed and draw some on the principle, man what a pain in the ass.



Now mind you I have no issues paying my taxes, I love this country and I know for the most part the taxes go to the many things that make the US what it is, but this is a bit rediculous, my Dad is going to have about some good money in inheritence and retirement and he can't even buy a new truck this year cause he can't get to the money without loosing half of it. It seems fucked that they can tax one dollar so many times.

damn that really ****** blow's hope it works out for the best good luck on that

thats how america works. sucks but we pay for it

It sucks, in this case the government gets 50% on the estate, so they get a little over 1 million in taxes before the money is distributed, then they get 38% from the inheriters.

that's why the people that avoid taxes and/or are smart with write offs are rich.



I've been told that you'll never ever be rich as long as your working for someone. because:



1 your taxed when you make money

2 your taxed when you spend money

3 your taxed when you hold money (in some cases)

4 your taxed when you own anything of value (car / land)

5 your taxed to license a car

6 your taxed to live

7 your taxed to die



ect ect



The secret of the rich guys is that they find ways to get around these taxes legaly.



Be it owning/running a business or other ways.



Thats why me and scott are starting a church. Best business going!

Yea I am going to the lawyer on Friday, we'll see what he says, might end up going with an LLC or a Trust.

Ok, break it down for the guy who's slow on math today. Let's say the original amount in this situation is $100,000. By the time all the taxes are paid, what's left?

Well 100,000 is a bad examply as estates are only taxed over $1,000,000



Let's go with that.



1,000,000

- 50% Estate Tax (this can also be paid as "inheritence tax if not paid at estate level)

= $500,000



Money dispersed to family member:



$500,000

-38.6% Income Tax (est tax for that bracket)

= $307,000 after taxes.





So if someone came to you today and said hey, you inherited one million dollars, expect to have $307,000 in your account when everything is paid.



Keep in mind you dead relative already paid taxes on this money when he earned it and on any dividends that he may have earned on the stocks.

ahhh, that sucks. I remember my wife and mother-in-law discussing this stuff when her grandmother was dying, about moving money to CD's with 2 names, so it wouldn't necessarily be an inheritance, or something like that.



My dad ought to do what he always said he was going to do, spend everything before he dies.

There's gotta be a loophole somewhere. If you find it, please share it with the rest of us. That's just ridiculous to have to pay such redundant taxes. Man, I have to figure out something in my will that will deny the government any stake in my estate... Why you pay tax when you die is beyond me. I mean, it's not like the government is maintaining public works in the afterlife.

The way my great aunt got away with handing down her money is she "rat holed" her money in cash and told my dad where it was a few weeks before she died. government never knew about it.

I'm not a tax expert, but I do have a bachelor's degree in Finance. You might want to be careful with holding the securities, because the government MAY value them at their market value at the time you acquire them. If the bottom falls out and they become worthless, Uncle Sam will still want his share of the original value. That would really suck.

That's not exactly the case, now there are some different scenarios, so I'll give you the one at hand.



Let's do an example.



My great uncle buys a share of stock at $10.00, value is now $15.00, estate would pay tax based on the increased value, then the value is transferred to the inheriter. The inheriter will pay no tax on this money until it is drawn on, no matter what the value, the day he draws it... as far as I understand is income.



So if there were say 100 shares of this stock, transferred to my dad at $1,500 the value becomes $2,000 or $20.00 per share, he cashes it, he pays tax on the value of $20.00. If it goes down, to say $1,000 or $10.00 per share he cashes it he pays income tax on $1,000.



This is the way I understand, no matter what the transferred value of equities, when you go to cash in those equities you pay tax on the value at the time you cash it in.



The portfolio is sold, it made 9% last month which is great, now to figure out how to convert some of that stock to cash without getting killed on taxes.....I'll let you know what we find out on Friday.

im going to take care of all those problems by burning everything i own and everyone that knows me so that noone has to pay taxes.



oh and i might as well die in the process too, silly me...all this red tape.

What a tool!



ANYWAY



Is this tax in reference to capital gains tax?

Nope this is just taxed as income.

Which is why I don't want any Democrats voted into office. Bush could have taken more taxes away from the wealthier as far as i'm concerned, because it is ridiculous to be losing half of what you have if not more....just cause you have more.

Republican or democrat, no one has really done much about taxes in the past 10 years, even the cookies that Bush tossed out effected a very limited amount of course you'll see a huge rebound on the stock market if a democrat gets into office, I would love to see the market shoot up https://www.nopistons.com/forums/pub...#>/biggrin.png

Hehe, your telling this to a guy who bought his 3rd gen strictly from profit gained on his stocks over the past year. https://www.nopistons.com/forums/pub...#>/biggrin.png

Hey man, just trying to point out the advantage of the donkey's!



I've done well with the few bucks I have thrown at the market, but I would not feel comfortable playing with a portfolio of this size.

well scott...you can take some comfort in the HUGE tax cuts that bush gave out last year https://www.nopistons.com/forums/pub...IR#>/smile.png





and democrat or republican...either way the middle class and lower class get fucked with taxes. Its all fuckign bullshit, I understand that taxes have to be paid, but they shouldn't be able to tax the same dollar twice.



Its like with the 7 I bought last july. I bought it for 1k..apid 60 bucks in sales tax. the car dies and I sell it for 800 a few months ago....then i get a letter in the mail saying I owe them 250 because the value of the car was higher than 1k....sorry for hijacking the thread https://www.nopistons.com/forums/pub...IR#>/smile.png

Tax cuts are a joke. Oh joy, all you guys get to save 7 cents on your taxes, but because of less taxes, there is less money to spend, and the first think to get cut is school funding. My tuition is going to more than double for next year because of all of the tax cuts. You save a little, I pay an extra 6 grand. https://www.nopistons.com/forums/pub...1047683664.gif

cant your dad give a one time gift to your mom and it be tax free?

HA HA uhh, no mom.

import one! yeah you can do one time gifts, look into it.

Phins, you need to look into 1031 exchanges. This deals mostly with real estate, but there's got to be a way to do it for just about anything...check it out.

flee to mexico!