Anyone Watching Yellen's Testimony?

GatorCatsi

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"Taxing unrealized gains presents technical challenges."
IOW, "once we figure out how, we're gonna do it."

This mark-to-market tax concept, long discussed by academics and rarely alive in the political sphere, could raise substantial money. A similar proposal from Eric Toder of the Urban Institute and Alan Viard of the American Enterprise Institute would generate an estimated $125 billion in 2025 alone, according to their 2016 paper. That plan was focused on publicly traded assets and applied a different rule to closely held businesses.
Top Democrat Proposes Annual Tax on Unrealized Capital Gains
 

g8tr72

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Been burying my fortune in the back yard for a few weeks now.

Looks like a scene from Caddyshack.
 

FireFoley

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So when we have HUGE unrealized losses in a year, are they going to send us money back? Heads they win tails they win. Here is what you are going to hear if the DUMS ever get this thru.

 

BMF

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So when we have HUGE unrealized losses in a year, are they going to send us money back? Heads they win tails they win. Here is what you are going to hear if the DUMS ever get this thru.



This is about as stupid as a 'wealth tax'. When are they going to raise the tax deduction for stock losses (from the current $3000)? They'll gladly tax your gains on a sale, but limit you to $3k? How long has it been $3k?
 

Bushmaster

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This is about as stupid as a 'wealth tax'. When are they going to raise the tax deduction for stock losses (from the current $3000)? They'll gladly tax your gains on a sale, but limit you to $3k? How long has it been $3k?

Been $3k forever for carryover losses.

I have some clients who may never recoup those. Their grandkids will be dead first.
 

BMF

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Been $3k forever for carryover losses.

I have some clients who may never recoup those. Their grandkids will be dead first.

I imagine having a left leaning administration isn't a good time to try and get that changed, huh?
 

78

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This isn’t new. Wyden’s been pushing this cockamamie plan for a couple years. Wait till you get to the illiquid side of the discussion with real estate and people doing stupid shyt with their brick and mortar out of desperation because they lack the liquidity to pay the pay-go tax.

Question: Why did the Robbie family sell the Dolphins to Wayne Huizinga for pennies on the dollar?

Answer: Because they needed the pennies to pay the federal estate tax on the old man’s illiquid estate.

Self-defeating prophecies are self-defeating. This isn’t a tax plan. It’s a moment of insanity.
 

BMF

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This isn’t new. Wyden’s been pushing this cockamamie plan for a couple years. Wait till you get to the illiquid side of the discussion with real estate and people doing stupid shyt with their brick and mortar out of desperation because they lack the liquidity to pay the pay-go tax.

Question: Why did the Robbie family sell the Dolphins to Wayne Huizinga for pennies on the dollar?

Answer: Because they needed the pennies to pay the federal estate tax on the old man’s illiquid estate.

Self-defeating prophecies are self-defeating. This isn’t a tax plan. It’s a moment of insanity.

I read that Biden wants to move the estate tax to $3 million (from the current $11.7 million) - at 45% on anything over $3 million. That is ridiculous. $3 million is a lot of money, but in 2021 it's not what it used to be. I know this is a "good problem to have", but realistically, people in their 30's and 40's who have aggressively put away money into a 401k plan will (or should) have well over $1.5-2 million....add in some real estate, inheritance, and other investments, I imagine there will be a lot of people with $3 million+ in the coming years (again - $3 million isn't what it used to be).
 

78

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I read that Biden wants to move the estate tax to $3 million (from the current $11.7 million) - at 45% on anything over $3 million. That is ridiculous. $3 million is a lot of money, but in 2021 it's not what it used to be. I know this is a "good problem to have", but realistically, people in their 30's and 40's who have aggressively put away money into a 401k plan will (or should) have well over $1.5-2 million....add in some real estate, inheritance, and other investments, I imagine there will be a lot of people with $3 million+ in the coming years (again - $3 million isn't what it used to be).

The figure is $3.5m and becomes $7m for marrieds through the implementation of a few estate planning techniques. But your point is well taken. That’ll contribute to the distress sale liquidity crunch I attempted to explain in my previous post. Estate taxes are due before the final 1040 can be filed. Interest and penalties begin racking up nine months after the death of the second spouse.

You know who it really hurts? Farmers and their families. We certainly aren’t incentivizing them with a more onerous family transfer tax.
 

BMF

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The figure is $3.5m and becomes $7m for marrieds through the implementation of a few estate planning techniques. But your point is well taken. That’ll contribute to the distress sale liquidity crunch I attempted to explain in my previous post. Estate taxes are due before the final 1040 can be filed. Interest and penalties begin racking up nine months after the death of the second spouse.

You know who it really hurts? Farmers and their families. We certainly aren’t incentivizing them with a more onerous family transfer tax.

78 - when can we meet to go over my estate planning?
 

78

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78 - when can we meet to go over my estate planning?

PM would be a start. We can share cell numbers or email addresses.
 

Concrete Helmet

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The figure is $3.5m and becomes $7m for marrieds through the implementation of a few estate planning techniques
There are so many advantages of not being legally married...and owning multiple businesses...
 

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