4 ms·

Seems straight forward enough, put a value cap on it. $10 million? 20 million? Is anyone going to feel bad for the poor soul who can't pay the tax bill on a fre

by ohashi 2y ago

Seems straight forward enough, put a value cap on it. $10 million? 20 million? Is anyone going to feel bad for the poor soul who can't pay the tax bill on a free 20 million dollar home? We have a limit on gifts and according to this is 13 million. Just make it that. What would be the downside here other than extremely wealthy having to pay some taxes upon death?

xboxnolifes 2y ago
Make inheritance count toward the gift limit. Have the full $13M limit left on your gifting exemptions? You pass down $13M in inheritance tax free.
- Veserv 2y ago
  That is literally already how it works.
throwaway22032 2y ago
It's simple really, many people don't see it as a "free home". It's your home. It's no more free or unfree, earned or unearned than anything else. The home that I grew up in is.. hell, I'd consider it to be "mine" and my siblings more than almost anything else I have.
- ohashi 2y ago
  If that home is over 10, 13 or 20m dollars... you can pay tax on it. If you have siblings, I assume it would be divided between you, so multiply value by siblings. If you got a home worth that much, you can pay some taxes on it. https://www.mansionglobal.com/articles/more-than-1-500-homes-in-the-u-s-sold-for-10-million-and-up-in-2023-7d59a565 https://www.mansionglobal.com/articles/more-than-1-500-homes... 1,500 homes sold for over 10m in a year. We're talking about the richest of the rich. That's exactly who should be paying some taxes. The people bitching about losing 'their' home this way... are either a) delusional or b) looking for a way to protect their incredible wealth. Is your family home worth more than 10 or 20m dollars?
  - throwaway22032 2y ago
    I can pay taxes on one dollar. It's the principle. In my country our threshold is significantly lower by the way - it's around a million, so bog standard houses get hit by it. I think that inheritance taxes are wholly equivalent to wealth taxes, e.g. "you have a thing, I like that thing, give me that thing", and therefore morally wrong. I could agree with them on the basis that the money were minimal and solely used for security e.g. police and military, it's an insurance policy against theft, the Government has a monopoly on force and that's better than warlords. It's not used that way though, so I reject the premise.
    - machomaster 2y ago
      No house costing a million is just a bog standard house. It's a mansion; if not in size then at least in value.
      - throwaway22032 2y ago
        The greatest privilege I suppose I have is that I am able to consider a bog standard three bedroomed terraced family house as being normal regardless of how much bad Governmental policy has managed to inflate the market value.
      - ok_dad 2y ago
        In Hawaii my house is 870k for a three bedroom built in the 50s on a medium plot. I still agree with your argument other than that.
        machomaster 2y ago
        There are different things that make house/apartment above normal. One is of course size and age. But other things like location have big influence as well (check apartments in central Manhattan). Instead of trying to analyze hundreds of different what-makes-house-above-bare-minimum aspects we can simply use the price as a good indicator of the underlying value. And 1mil house is definitely not bare minimum. It is clearly above average.

by ohashi 2y ago

xboxnolifes 2y ago

Make inheritance count toward the gift limit. Have the full $13M limit left on your gifting exemptions? You pass down $13M in inheritance tax free.

Veserv 2y ago
That is literally already how it works.

throwaway22032 2y ago

It's simple really, many people don't see it as a "free home". It's your home. It's no more free or unfree, earned or unearned than anything else. The home that I grew up in is.. hell, I'd consider it to be "mine" and my siblings more than almost anything else I have.

ohashi 2y ago
If that home is over 10, 13 or 20m dollars... you can pay tax on it. If you have siblings, I assume it would be divided between you, so multiply value by siblings. If you got a home worth that much, you can pay some taxes on it. https://www.mansionglobal.com/articles/more-than-1-500-homes-in-the-u-s-sold-for-10-million-and-up-in-2023-7d59a565 https://www.mansionglobal.com/articles/more-than-1-500-homes... 1,500 homes sold for over 10m in a year. We're talking about the richest of the rich. That's exactly who should be paying some taxes. The people bitching about losing 'their' home this way... are either a) delusional or b) looking for a way to protect their incredible wealth. Is your family home worth more than 10 or 20m dollars?
- throwaway22032 2y ago
  I can pay taxes on one dollar. It's the principle. In my country our threshold is significantly lower by the way - it's around a million, so bog standard houses get hit by it. I think that inheritance taxes are wholly equivalent to wealth taxes, e.g. "you have a thing, I like that thing, give me that thing", and therefore morally wrong. I could agree with them on the basis that the money were minimal and solely used for security e.g. police and military, it's an insurance policy against theft, the Government has a monopoly on force and that's better than warlords. It's not used that way though, so I reject the premise.
  - machomaster 2y ago
    No house costing a million is just a bog standard house. It's a mansion; if not in size then at least in value.
    - throwaway22032 2y ago
      The greatest privilege I suppose I have is that I am able to consider a bog standard three bedroomed terraced family house as being normal regardless of how much bad Governmental policy has managed to inflate the market value.
    - ok_dad 2y ago
      In Hawaii my house is 870k for a three bedroom built in the 50s on a medium plot. I still agree with your argument other than that.
      - machomaster 2y ago
        There are different things that make house/apartment above normal. One is of course size and age. But other things like location have big influence as well (check apartments in central Manhattan). Instead of trying to analyze hundreds of different what-makes-house-above-bare-minimum aspects we can simply use the price as a good indicator of the underlying value. And 1mil house is definitely not bare minimum. It is clearly above average.