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The proposed "death tax" idea is to make inheritance a taxable event. I'm against that. I'm for however that capital gains carry past death. If you inherent ca
by mlindner 5y ago
The proposed "death tax" idea is to make inheritance a taxable event. I'm against that. I'm for however that capital gains carry past death.
If you inherent cash, that cash has already had taxes paid for that. It shouldn't be taxed again like some "death taxes" propose to do. If you inherit stock, then sell it, the basis date for that stock should be the date it was bought, not the date you received it.
- nobodyandproud 5y agoIt’s not a bad compromise. Even that, I’m sure, would end up getting mangled over technicalities and added loopholes.
- taeric 5y agoSorta. Inheriting cash is no different than being gifted cash. And you would have to report that as income. It only gets complicated with capital assets. And your proposal works for simple stock holdings. Consider, if you are the beneficiary of a retirement account, you already have to withdraw percentages every year. So that is covered? Or not?
- mlindner 5y ago> Sorta. Inheriting cash is no different than being gifted cash. And you would have to report that as income. Right and I don't think gifts should be taxed either. It's already been taxed.
- taeric 5y agoOn this, we'll just have to disagree. :( At some level, most (all?) money has already been taxed. Some entities can write off expenditures as a deduction. Most of us can't. Consider, my income had already been taxed. Why do I have to pay sales tax on purchasing something? Edit: and in case you fix on sale's tax being different from income. Payroll for businesses comes out of profit. Which comes from that same transaction. So, somebody's income is ultimately funded from a sales made with money that had been taxed.
- JAlexoid 5y agoOh.... Cool! So I'll give you $200k as a gift and you gift me your house "as a gift" ;)