Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Index Funds are Your Friend

Index Funds are Your Friend - Every stock market or stock exchange offers indexed funds and these index funds are more beneficial to you as a new investor as they...

read entire tip

Recently Added
Other Great Sites
 

Tax Law Inheritance

Perhaps the only thing more sure than death and taxes is death plus taxes. If you think the government is going to allow you to take it with you, or allow any of your heirs to get all of it, you're living in fantasy land.

It is possible, particularly if you and your heirs are very, very independently wealthy and can afford to buy lawyers, judges and congress members by the dozen to beat the tax collector out his many pounds of dead decaying flesh, but it ain't easy. Anything that you leave anyone -- except for some certain charitable organization controlled by rich people, that equals more than a pathetically low threshold is subject to the inheritance tax.

In other words, to put it bluntly. You can leave your dog or cat a roll of general purpose, brand new postage stamps and Fido or Fluffy won't have to pay taxes on the stamps or have them seized by Uncle Sam. But leave them a stamp album with a few valuable "covers" in it and they're deep in doggie doo doo and kitty litter. By the time the Feds are done with them they'll be cursing your memory for not inflicting the treasures on your ex-spouse instead of them.

Let's say, for the month, the instead of being the deceased, you're Fluffy or Fido and have just come into your inheritance -- or your "expectations" as they were called in Dickens time, when the courts which handled such matters were notorious for stalling probate cases for years and in some cases generations.

So your dearly beloved leaves you a '64 partially restored Mustang, a house that's mortgaged for more than it's worth, a couple of early generation big screen TVs and a library of 10,000 books. First thing, since the value of things like not-quite-restores classic cars and books is rather elastic, you'll have to do is dip in your pocket to hire an assessor to put a value on the estate. Then you calculate the tax due based on the annual schedule for that year and pay it sometime within the nine months after the estate has been probated.

If you're lucky that will be the end of it. If you're not the government will come after you claiming you underestimated the net value of the estate and cheating them on the amount due. You, of course, will appeal their attempt to overinflate the value of Uncle Ned's Mickey Spillane collection and, eventually, you'll reach a settlement that will satisfy neither you nor the taxman.

But it will keep you out of the slammer and that's always a better thing than the alternative.

Discuss It!

gmail sign up said:

pt to overinflate the value of Uncle Ned's Mickey Spillane

loginsk.com said:

You, of course, will appeal their attempt to overinflate the value of Uncle Ned's Mickey Spillane collection and, eventually, you'll reach a settlement that will satisfy neither you nor the taxman.

hotmail login said:

Tks sharing, it is useful

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Proof Of Concept

Proof Of Concept – (Proof-of-concept) Referring to the types and applicability, reliability or evidence, verification, confirmation and corroboration, even substantiation, or resilience of data, fact etc. Also called POC, showing its usefulness and applications, features and possibilities, allowing to an extent no to low risk exposure and exploration, prospecting if...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com