Reply to Vox article on inheritance

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]As the very kind tax professional told me, this is what happens when people are working with incomplete knowledge. Complete knowledge, it turns out, is incredibly important when you’re dealing with the tax code.

Meanwhile, incomplete knowledge is kind of the human condition. Tax professionals cost money, which can be prohibitive for many people, especially those who’ve received a windfall but worry they’re about to be staring down some enormous bills.[/quote]

Both parties, but especially Republicans, have made the tax code more complex.

Complexity advantages the rich, who have money to hire advisors.

Simplify the tax code.  Raise the estate tax.  No one deserves to be born with a silver spoon in their mouth.  Make the playing field equal.[/quote]

People whose parents were prudent with money dont “deserve” it but their parents deserve to pass on what they earned and saved and planned for their kids.

[/quote]

Sounds good. But let's update the tax code[b] so that the step up in basis is eliminated[/b].  It's isn't right that people can make millions of dollars and never pay taxes on it. [/quote]

[b][u]That money[/u] has already been taxed[/b] at least once, possibly multiple times.[/quote]

It's extremely clear that you don't know what the step up in basis is.  No, that money has never been taxed.[/quote]

You are strident, but not that bright.  Say the asset is stock.  Parent buys stock with salary , which is taxed.  Any dividends accrued on stock while held are taxed,  If heir sells stock, that is also taxed[/quote]

You simpleton.  The money represented by the step-up basis is never taxed.  If a parent buys stock at 10/share and it is inherited at 100/share, the capital gains on 90/share is never taxed.  It's not taxed when the heir sells because the basis is stepped up.  It wasn't taxed when the parent had it because they did not sell or the stock could not have been part of the estate.  Obfuscating about taxing salary and dividends is completely beside the point, which may be because you don't understand the terms you're using.  [/quote]

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