Estate Tax Hike

[Jimaz]

From The Freep: The clock is ticking: Die now or pay later

... the inheritance tax is in exile this year. The rate is zero. Next year it jumps to 55%. That's right. From zero to 55 at a stroke of midnight.

Would it be beneficial to divide an estate before the tax hike takes effect on January 1st even though the current owner is most likely to live beyond that date? I would guess not.

Sincerely.

[Stosh]

From The Freep: The clock is ticking: Die now or pay laterWould it be beneficial to divide an estate before the tax hike takes effect on January 1st even though the current owner is most likely to live beyond that date? I would guess not.

Sincerely.

What they don't say is that there is an exclusion amount.
If it's under a million, you pay no tax.

http://en.wikipedia.org/wiki/Estate_..._United_States

[Jimaz]

Thanks for the link.

It seems suspiciously macabre that the tax code would seem to favor people who die at some particular time but with the conspicuous emergence of fear politics, it wouldn't shock me at all.

Boo!

[jiminnm]

What that exclusion means is if you give away more than $1 million during your life, you will have no exclusion from estate tax when you die. Lifetime gifts over $13,000/yr to an individual are subject either to gift tax when the gift is made or a reduction in the exclusion at death.

[Ray1936]

Yawn. Not a problem here.

[Stosh]

What that exclusion means is if you give away more than $1 million during your life, you will have no exclusion from estate tax when you die. Lifetime gifts over $13,000/yr to an individual are subject either to gift tax when the gift is made or a reduction in the exclusion at death.

I don't think so.

For a person dying during 2006, 2007, or 2008, the "applicable exclusion amount" is $2,000,000, so if the sum of the taxable estate plus the "adjusted taxable gifts" made during lifetime equals $2,000,000 or less, there is no federal estate tax to pay

[Bearinabox]

Mitch Albom should really stick to describing attendees at sporting events who weren't actually there and writing cheesy schmaltz about dying college professors.

[lincoln8740]

http://www.freep.com/article/2010071...w-or-pay-later

I know, I know there are some whack jobs around here who think people should be taxed at 90% but for the rest of us here on planet earth..............

[Bearinabox]

I'd like to institute a Stupid Posts Tax, wherein each stupid post would raise the poster's taxes by 1%. A quick perusal of your previous posts suggests that if you stopped posting now you'd get to keep 1% of your income.

[Detroit Stylin]

http://www.freep.com/article/2010071...w-or-pay-later

I know, I know there are some whack jobs around here who think people should be taxed at 90% but for the rest of us here on planet earth..............

So when did Mitch start writing political satire?

[jiminnm]

I don't think so.

That was then, this is now.
http://harborfi.typepad.com/tax/unde...-tax-laws.html

[oldredfordette]

I would kill myself if I agreed with that scab.

[Stosh]

That was then, this is now.
http://harborfi.typepad.com/tax/unde...-tax-laws.html

So what? Still isnt gonna matter. From YOUR link:

In addition to the $1 million lifetime federal gift tax exemption, you also have a $3.5 million federal estate tax exemption for 2009. You can leave up to that amount to relatives or friends free of any federal estate tax

[Jimaz]

That was then, this is now.
http://harborfi.typepad.com/tax/unde...-tax-laws.html

Okay, now that was a very helpful link. Thank you, jiminnm!

Of course no action will be taken without an attorney so all this is informal at this point.

[Jimaz]

q.v. DetroitYES Forums > Detroit Connections > Estate Tax Hike

[Ray1936]

I would kill myself if I agreed with that scab.

Orf....I've enjoyed your posts for some time, if not always agreeing with you. But I'm very curious...what about you? Were you a reporter or other grunt for the press before the strike, and what are you doing now? Reply privately if you wish or just tell me to buzz off if that's more approrpiate. No offense.

[oldredfordette]

I am not a reporter. I am a graphic designer. I am back at the paper. No offensive taken. I like your posts too!

[jiminnm]

So what? Still isnt gonna matter

Last I checked, it is no longer 2009, but 2010.

[Stosh]

Last I checked, it is no longer 2009, but 2010.

Last time I checked, you still aren't following the facts.

You still aren't gonna inherit a million dollars, and if you do THEN you will pay the tax.

[maxx]

I noticed that Mitch conveniently forgot to mention that the estate tax only affects people who leave more than a couple million.

[jiminnm]

Stosh, your above statement makes absolutely no sense, which we have all come to expect. Reread the section in my cite on the annual gift tax exclusion, which is relevant to jimaz's original post. The law and its exclusions have changed annually and will change again for 2011 [[unless Congress extends the current law).

Also, individuals don't pay the estate tax, the estate pays any tax due prior to distributions. Individuals pay inheritance taxes, if your state has any.

[Bearinabox]

I noticed that Mitch conveniently forgot to mention that the estate tax only affects people who leave more than a couple million.

I think he's genuinely unaware that other types of people exist, except as convenient props when he feels like writing about how charitable he is.

[Stosh]

Stosh, your above statement makes absolutely no sense, which we have all come to expect. Reread the section in my cite on the annual gift tax exclusion, which is relevant to jimaz's original post. The law and its exclusions have changed annually and will change again for 2011 [[unless Congress extends the current law).

Also, individuals don't pay the estate tax, the estate pays any tax due prior to distributions. Individuals pay inheritance taxes, if your state has any.

My point is, if it's under the limitations, you don't have to worry about it.

[Ray1936]

I am not a reporter. I am a graphic designer. I am back at the paper. No offensive taken. I like your posts too!

Ah! Thanks. Be well.

[lincoln8740]

I noticed that Mitch conveniently forgot to mention that the estate tax only affects people who leave more than a couple million.

yeah F-- those family run businesses!!!
and
screw those small busineesses!!!

How dare they want their money only taxed once!!

Evil people