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Person dies, wealth gets inherited at new cost basis, heirs pay off loans with new (higher) cost basis, tax revenue isn’t collected. At least that’s the model
by fossuser 5y ago
Person dies, wealth gets inherited at new cost basis, heirs pay off loans with new (higher) cost basis, tax revenue isn’t collected.
At least that’s the model as I understand it.
- nomel 5y agoI assume this means the banks are giving > 40 years loans? Isn't inheritance tax fairly high? A quick search says 40% federal, with around 20% state.
- fossuser 5y agoIIRC estate tax doesn't kick in until after ~$20M? I don't really know much about this particular area of tax law though so I wouldn't rely on my comments.
- djrogers 5y ago> tax revenue isn’t collected. If you completely ignore estate taxes, this would be true.
- fossuser 5y agoYeah you're probably right - my tax knowledge of this area is not great since I haven't had to care about it. I think that kicks in after $20M?