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The first $11 million of an estate ($22 if it is a couple's estate) is already tax free. If you inherit stock, or land, or any other money making asset, it doe

The first $11 million of an estate ($22 if it is a couple's estate) is already tax free. If you inherit stock, or land, or any other money making asset, it does not make sense to not tax it just because it was not sold.

harimau777 7y ago
Good point! I definitely think it would make sense to make an exception to a hypothetical "you aren't taxed until you sell it" rule for things that are either directly analogous to wealth (e.g. stocks) or that directly generate wealth (e.g. a factory or business). I could also see land and housing being an exception, although I also don't like the idea of someone being forced to sell the family homestead. Do you know if they appraise the value of things like land based on its current use or potential use? For example, what if the value of the mineral rights for the family homestead was much greater than the residential value?
- Navarr 7y ago
  Even if they can't sell it though, the article says they're leasing it. I'd be surprised if it were being leased for free. If that's the case it is generating some sort of money. Taxes like this exist to prevent the hoarding of wealth through generations
- deleted 7y ago
  [deleted]
- C1sc0cat 7y ago
  Why? the USA's taxing of stock that have not had a taxable gain is just wrong and I say that as some one to the left of AOC
  - gamblor956 7y ago
    If you can use the stock in any way, including as a collateral, you have had a taxable gain... Taxable gain in pretty much all of the Western World results from "dispositions" of items, which includes non-sale transactions. Also, the kind of stock we are describing was issued as compensation, and taxation was either reduced or deferred depending on the circumstances, so it is entirely appropriate to tax certain non-sales gains related to the stock.
    - C1sc0cat 7y ago
      No sane person would lend money on an illiquid stock with no value what if the company went bust "sorry mate" tanks for the 100,000 loan hers some worthless paper in return.
      - gamblor956 7y ago
        Generally for illiquid stock banks require significant overleverage, but it is something they do quite regularly, especially for startups with perceived future value.

harimau777 7y ago

Good point! I definitely think it would make sense to make an exception to a hypothetical "you aren't taxed until you sell it" rule for things that are either directly analogous to wealth (e.g. stocks) or that directly generate wealth (e.g. a factory or business). I could also see land and housing being an exception, although I also don't like the idea of someone being forced to sell the family homestead. Do you know if they appraise the value of things like land based on its current use or potential use? For example, what if the value of the mineral rights for the family homestead was much greater than the residential value?

Navarr 7y ago
Even if they can't sell it though, the article says they're leasing it. I'd be surprised if it were being leased for free. If that's the case it is generating some sort of money. Taxes like this exist to prevent the hoarding of wealth through generations
deleted 7y ago
[deleted]
C1sc0cat 7y ago
Why? the USA's taxing of stock that have not had a taxable gain is just wrong and I say that as some one to the left of AOC
- gamblor956 7y ago
  If you can use the stock in any way, including as a collateral, you have had a taxable gain... Taxable gain in pretty much all of the Western World results from "dispositions" of items, which includes non-sale transactions. Also, the kind of stock we are describing was issued as compensation, and taxation was either reduced or deferred depending on the circumstances, so it is entirely appropriate to tax certain non-sales gains related to the stock.
  - C1sc0cat 7y ago
    No sane person would lend money on an illiquid stock with no value what if the company went bust "sorry mate" tanks for the 100,000 loan hers some worthless paper in return.
    - gamblor956 7y ago
      Generally for illiquid stock banks require significant overleverage, but it is something they do quite regularly, especially for startups with perceived future value.