Row 9721

Row ID: 9721 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 9721 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

> If the asset needs to be sold to cover the taxes, then so be it.

And what if the asset is the house that the heir's are living in? Or the business your father started? Your father was a butcher and so you are a butcher, but you need to sell the business in order to cover the taxes on the increase in value of the business despite the business losing value because it's no longer owned by your family now and the local's were supporting a 'locally owned business'.

You are basically treating giving the assets to the heir to be identical to giving the assets to some stranger before dying. Our tax code incentivizes investing your assets and leaving them to your descendants. There would also be complaints about double taxation. "So, I was working at my father's business as a butcher, and he died. I'd like to inherit the family business but the government says it's worth $500k and my father had an interest only mortgage so he still owes $100k. I can't inherit the family business until the estate pays $200k to cover the $400k of appreciation in the business and then $100k on the mortgage of the property, and then $200k in the estate tax. The estate is going to pay $500k for a $500k asset. If only my father sold everything before dying"

Of course, this could all be resolved by having a fairly large 'Death' exemption. Estates of deceased individuals maybe could cover the first $1 million of income tax free for the year. And the estate tax could have a $5 million exemption so estate taxes are only paid on assets in excess of the first $5 million. You'd still have the same general problem where an estate may be better off letting a lienholder take the collateral instead of leaving it to the heirs, but at least then it would only impact the wealthy.

FieldValue
text > If the asset needs to be sold to cover the taxes, then so be it. And what if the asset is the house that the heir's are living in? Or the business your father started? Your father was a butcher and so you are a butcher, but you need to sell the business in order to cover the taxes on the increase in value of the business despite the business losing value because it's no longer owned by your family now and the local's were supporting a 'locally owned business'. You are basically treating giv…
label r/economics
dataType comment
communityName r/Economics
datetime 2024-05-20
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Raw Record

{
  "text": "> If the asset needs to be sold to cover the taxes, then so be it.\n\nAnd what if the asset is the house that the heir's are living in? Or the business your father started?  Your father was a butcher and so you are a butcher, but you need to sell the business in order to cover the taxes on the increase in value of the business despite the business losing value because it's no longer owned by your family now and the local's were supporting a 'locally owned business'.\n\nYou are basically treating giving the assets to the heir to be identical to giving the assets to some stranger before dying. Our tax code incentivizes investing your assets and leaving them to your descendants. There would also be complaints about double taxation.  \"So, I was working at my father's business as a butcher, and he died. I'd like to inherit the family business but the government says it's worth $500k and my father had an interest only mortgage so he still owes $100k. I can't inherit the family business until the estate pays $200k to cover the $400k of appreciation in the business and then $100k on the mortgage of the property, and then $200k in the estate tax. The estate is going to pay $500k for a $500k asset. If only my father sold everything before dying\"\n\nOf course, this could all be resolved by having a fairly large 'Death' exemption. Estates of deceased individuals maybe could cover the first $1 million of income tax free for the year. And the estate tax could have a $5 million exemption so estate taxes are only paid on assets in excess of the first $5 million.  You'd still have the same general problem where an estate may be better off letting a lienholder take the collateral instead of leaving it to the heirs, but at least then it would only impact the wealthy.",
  "label": "r/economics",
  "dataType": "comment",
  "communityName": "r/Economics",
  "datetime": "2024-05-20",
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}
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