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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (577471)	7/22/2010 11:04:12 PM
From: i-node	Read Replies (2) \| Respond to of 1570814

Most businesses that might be affected adversely by the estate tax are incorporated. If the family loses control because of estate taxes, it isn't going to kill the business. It might even be a boon to said business. Of course they are, because competent advisers will almost always recommend incorporation for ALL businesses. I did, for years. Which has nothing, whatsoever, to do with whether estate taxes can trigger a liquidation. Really, is this a subject you want to argue with me about? What happens when a business with a FMV of $10 million (by any characterization, a very small business), substantially all of which is appreciated productive assets, is passed into an estate? I'll answer the question because I've personally handled many such transactions: You have a wherewithal to pay problem of the first order. There is no cash to pay the taxes. What happens to the business? It must be sold to the highest bidder and the jobs are gone and the assets are sold off. Not much different from a bankruptcy, when you consider it. Particularly in the lousy credit markets we now have, there is no choice. Whether the business is incorporated has nothing at all to do with it.