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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (855)	3/31/1998 7:28:00 PM
From: MYNGA	Read Replies (1) \| Respond to of 5810

My mom is 71 yrs old. She received SSI. Last year, she started to play the market and made about $20,000. To our surprise, our CPA said that she would have to pay ~28% on her total of SSI and the profit (after subtracting standard exemption). Colin, I thought I read somewhere that if a person over 65 yrs old, she or he will have tax free on her first $9,000. Am I wrong? Please response when you have time. We appreciate your help. Thanks.

To: Colin Cody who wrote (855)	4/1/1998 6:21:00 PM
From: Taxboy	Read Replies (1) \| Respond to of 5810

Paying estate taxes at the absurd rates is voluntary. Of course, often you can save money by paying estate tax on the first spouse's death and enjoying the bracket ride. And for people in the $10 million plus level, the estate tax is hard to avoid. But under this amount, by the use of annual gifting, family limited partnerships, split-interest gifts and other advanced planning the estate tax can be minimized to a point where the government (who has been getting yearly profit allocations in the form of income taxes) does not become a full partner at death by taking 50% of your estate. When I tell my clients that half goes to the gov't, most are viscerally offended. Anybody who lets the gov't get away with this, when they could do some planning is a shmoiger, shmendrick etc., unless they have a reason to want to hold on to everything until they die . By doing this they will have their assets go to pay half a million dollars to pay a floor of HUD workers who do their jobs in the most incompetent fashion.