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Strategies & Market Trends : Retirement - Now what? -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (123)	5/11/2005 12:52:27 PM
From: Drygulch Dan	Read Replies (1) \| Respond to of 288

I think you are in a good position to argue that one in tax court. The valuation has to be based on date of death appraisal not some fuzzy new age assessment of value. I hope you have a good tax attorney advising you. That 50% only applies after the exemption. So the effective tax rate is really lower. Its 50% on the 1.7m to be sure, but if you think of it as a percentage on the whole it works out to be less. $850K divided by $2.7m works out to be about 31%. The 2004 max rate show 48% now. In my mind I was comparing the cap gain 15% with this approx 30% that I mentally estimated for you. I don't keep up with the changes in estate tax law. Just now when I tried to research the exemption threshold, it looks like there is no significant exemption anymore, it just scales up from $10,000 to $1,000,000 with a 20% rate on every dollar over $10K scaling up in steps to $345,800 tax plus 41% for every dollar over a million per Table A in the 8/2004 706 instructions. That $345K number sounds familiar. I thought the exemption amount was going to increase over time towards the year 2011. Its galling to think that the gov't gets something like one third of everything you've made over your lifetime after paying income and capital gains taxes in the process of collecting it. In three generations they effectively take it all back.