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Old 03-23-2006, 06:54 PM   #1
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Default O.K. Tell Me The Truth

The other day my dad told me that inheritance money is NOT taxed. I call BS. There is no way that fat *** cake eater Joe that sits on his *** 24/7 inherits $5 mill from daddy and is not taxed. While in part, John the construction worker that busts his *** and gets heat stroke all summer makes $30K a year as a private contractor and is taxed 23%. That is $6900 at tax day. Please tell me this is not true.
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Old 03-23-2006, 06:59 PM   #2
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you still get proporty tax and **** like that so you do get taxed
you he does have to pay when it come to taxes on land but he doesnt get taxed he gets the money when he inherits it.

get it now
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Old 03-23-2006, 07:02 PM   #3
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when my son got his dads life insurance he didn't pay taxes on it but he did have to pay tax on interest earned after that.
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Old 03-23-2006, 07:04 PM   #4
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I gotcha. They'd still have to pay taxes on what they inherit. But if they are only left money they are not taxed? I think they should be put in an income bracket like evryone else. Inheritance money should be considered income. Let me rephrase, I think it should be based on what the recipiant is worth in all assets. If the recipiant is already a millionare they should be taxed on an inheritance at a much higher percenttile than a person pulling in $50K. As a matter of fact i'd say if a person is worth $40K on up they should be taxed. IMO.
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Old 03-23-2006, 07:20 PM   #5
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theres an older guy I knew from jackson hole that inherited about 2 million from his dad about 40 years ago and is now 60 something and never had a job in his life...just re-investing what he got....
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Old 03-23-2006, 07:37 PM   #6
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yup its taxible ... you get it on a 1099 somthing, and any thing that is not mark as non taxeble you have to pay taxes on.

from working on Turbotax for two seasons, evertme someone ask about money that got from a famy member it was taxible, "nless its under like 10K or something like that"
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Old 03-23-2006, 07:41 PM   #7
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An inheritance has to be over a certain amount before it is taxed. Went through the same thing when my Mom passed away
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Old 03-23-2006, 07:55 PM   #8
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Quote:
An inheritance has to be over a certain amount before it is taxed. Went through the same thing when my Mom passed away
That makes sense. Sorry about you're mom. My grandma is almost 101 yrs old. She is a ticking time bomb and my favorite relative.
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Old 03-23-2006, 08:03 PM   #9
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There are limits and exclusions that apply, and there are differences between Federal and State tax laws. If you do have an estate/inheritance of some value, it is advisable to consult an estate planner well before needed to ensure you pay the proper (minimum) amount.

Here'* a web site for example: http://www.bankrate.com/brm/itax/Edi...g/basic_3a.asp

Also, here'* a quote from another site: http://moneycentral.msn.com/quickref...&Topic=3&Sub=2

"How are the estate tax rates changing as a result of the Tax Relief Act of 2001?

The estate tax rates decrease each year, and the exemption amounts increase until 2010 when the estate tax is repealed completely. (A year later, the tax is supposed to come back, but ití* fair to expect that a Republican-controlled Congress wonít let that happen.)

For 2005, the exemption amount is $1.5 million, and the top tax rate is 48%. By 2009, the exemption amount will be $3.5 million, and the top tax rate will be 45%.

Most of us won't be faced with these issues, but it is important to those of us whose families have worked hard to accumulate financial security and for those of us that would like to. One example of why many of us oppose the confiscation of wealth by the government through estate and inheritance taxes is the example of the family owned business.

Whether a family farm or a corner store, it'* not unusual for a family to live comfortablely, if not lavishly, on the income from a family business. Some family farms may make say, $100,000.00 per year. But when the last parent passes and the family assets are inventoried it'* not hard to break the $1.5 million dollar level. The typical farm is going to be 1600+ acres, which at $1000.00 per acre, is already $1.6 mil, add in the house, barns, tractors and related assets and all of a sudden the kids have to come up with $500,000.00 for the tax man for a business that only produces that much cash flow every 5 years, not counting what they need to live on while they run the farm. Many families end up having to sell out, lose half their value, and find work in town just so they can pay the tax man.

Whether your Father and Grandfather built a farm or an auto body shop business, that'* just not right; whether you think their kids deserve it or not is also beside the point. And while you feel sympathy for the construction worker paying his/her taxes, remember that the assets built by the family were also taxed at whatever the prevailing tax rate was when those assets were accumulated.

Inheritance and Estate taxes are bad, and we Conservatives take some pride in the progress that has been made in getting rid of them.
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Old 03-23-2006, 11:23 PM   #10
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Quote:
Originally Posted by fantastic88

Sorry about you're mom.:
That was a little over 5 years aog but,Thanks
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