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Depreciation only defers taxes. Their cost base declines and on a future sale they have greater capital gains. Jokes on them if the future tax rate is signific
by voisin 5y ago
Depreciation only defers taxes. Their cost base declines and on a future sale they have greater capital gains.
Jokes on them if the future tax rate is significantly higher than the rate they were writing off all along.
- tantalor 5y agoNo problem, just bequeath the asset to your heirs and the gains disappear.
- gruez 5y ago...but then you have to pay estate tax.
- tantalor 5y agoonly morons pay the estate tax
- fallingfrog 5y agoNo, you don’t. https://americansfortaxfairness.org/tax-fairness-briefing-booklet/fact-sheet-the-estate-inheritance-tax/ https://americansfortaxfairness.org/tax-fairness-briefing-bo...
- gruez 5y agoNot really. If you want the step-up basis, it has to go through your estate. If you do it through some sort of trust you lose that. There's a 11M exemption for estate tax, but for someone like jeff bezos he's probably not saving much using that.