Monday, September 12, 2011

NY Time columnist reviews situation on estate taxes, slowness of IRS in releasing forms; Bill Gates SR argues FOR estate tax

On Saturday, Sept. 10, Paul Sullivan wrote a recap of the inheritance tax situation in his “Wealth Matters” column of the New York Times, Personal Business, p. B5, “In agreement on estate taxes, even more complications,” link here.  

When someone passes in 2011 or 2012, the agreement exempts the first $5 million in assets per person. In 2010, it’s very complicated, there is a “Hobson’s Choice”, and the IRS doesn’t even have all the paperwork available yet to make the choice. It appears as though heirs can opt out of the estate tax but later face a liability basis calculation based on original value, not on date of death.

The AICPA, American Institute of Certified Public Accountants (AICPA) has an information page here for CPA's. 

It’s interesting that the Left has not been more vocal about “inherited wealth” this time around, given the debate on the budget crisis. 

Here, on this video, Bill Gates Sr,. interviewed by his famous son, argues for the estate tax. He says, "We have a situation where there is no estate tax".  The interview was conducted mid 2010, before the Dec. 2010 agreement. 

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