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Steve Jobs' Heirs Could Be Forced to Sell Apple Shares (estate faces $867 million tax bill.)
www.nbcbayarea.com ^ | Tuesday, Nov 22, 2011 | Updated 1:38 PM PST | Barbara E. Hernandez

Posted on 11/22/2011 2:40:27 PM PST by TSgt

When Steve Jobs died last month, he left $6.78 billion of stock in both Apple and Disney presumably to his wife and family. His widow, Laurene Powell Jobs, may not have a better time to sell off the billions of stock and avoid $867 million in capital gains taxes.

Financial planners told Bloomberg that Powell Jobs and the family should quickly divest and diversify its holdings to avoid higher taxes.

Capital gains taxes are set to rise in 2013 from 15 to 20 percent, and Americans with a high income may also be subjected to a 3.8 percent tax on unearned gains.

Jobs died on Oct. 5 at the age of 56. At his death, he owned 138 million Disney shares, or 7.4 percent of the company, approximately valued at $4.74 billion and 5.55 million Apple shares worth $2.05 billion.

Before his death, Jobs moved the shares into a trust to avoid probate fees. However, his will hasn't been made public, but it's likely most of his estate is distributed between his surviving wife and four children.

“I can’t see any reason not to sell all of it,” Kacy Gott, chief planning officer at the wealth-management firm Aspiriant, told Bloomberg.

Analysts said the Apple holdings would be sold easily, but the volume of Disney shares would be more difficult to unload. Disney bought Jobs' Pixar in 2006 for $7 billion in stock.

Candace Pugatch, a spokeswoman for Laurene Powell Jobs, declined to comment on her tax situation or what she plans to do with Apple or Disney shares.

Powell Jobs has a master's degree in business administration from Stanford University, but is reportedly not interested in taking her husband's seats on the Apple or Disney board.

If Powell Jobs has no interest in the running of Apple, then selling off billions of dollars of Apple stock would be a no-brainer.

Both her and her family are likely far from destitute, so they don't need capital right now, but current tax laws mean she will likely sell off a large chunk of it before 2013.

That could mean millions of shares will be on the open market and possibly in the hands of private equity groups -- likely not Steve Jobs' or Apple's ideal scenario.


TOPICS: Constitution/Conservatism; Extended News; Government
KEYWORDS: estatetax; stevejobs; stevejobsestate
The only sure things in life...

Maybe this will spotlight how unfair the estate tax is...

1 posted on 11/22/2011 2:40:29 PM PST by TSgt
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To: TSgt

Too funny.
Joe Robbie’s family was forced to sell the Miami Dolphins and Joe Robbie stadium to pay off inheritance taxes.
Hey feds, F you.
It’s double taxation a these funds already have been taxed.


2 posted on 11/22/2011 2:49:02 PM PST by Joe Boucher (FUBO ya quota boy ( Real conservative or go fish, Sooo, that leaves you out Mitt))
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To: TSgt

Gee, being a billionaire is just so hard.

(I am opposed to taxes on property left by deceased family members by the way)


3 posted on 11/22/2011 2:50:12 PM PST by vladimir998 (Public school grads are often too dumb to realize they're dumb)
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To: TSgt

What’s the problem - he made money, he owes taxes. Of course that is the current estate tax - ie. double taxation.

Maybe the Democrats are hoping of many mulch-millionaires to dies before changes are made...geez...


4 posted on 11/22/2011 2:57:17 PM PST by Deagle
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To: TSgt

It’s the 1% getting screwed again.

They better sell some shares now to hedge any decline and be ready to write a large check.


5 posted on 11/22/2011 2:59:45 PM PST by cicero2k
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To: TSgt

If he left it all to his wife, there is no estate tax, and she gets a basis step-up, so she can sell it tax-free.


6 posted on 11/22/2011 3:04:02 PM PST by proxy_user
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To: TSgt

Someone alert Warren Buffet ... This is how he made his money ,, piggybacking on forced tax sales ...


7 posted on 11/22/2011 3:09:03 PM PST by Neidermeyer
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To: TSgt

Didn’t Steve Jobs consistently support Dem candidates and Dem causes?

How ironic...........


8 posted on 11/22/2011 3:14:15 PM PST by fishtank (The denial of original sin is the root of liberalism.)
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To: TSgt

This is just a purely speculative article. They can sell, sure, or they can keep it.

Big woop. they certainly are NOT “forced to sell”; that is nonsense.


9 posted on 11/22/2011 3:15:54 PM PST by yldstrk (My heroes have always been cowboys)
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To: proxy_user

Yeah, exept the $10 Million combined exemption expires in 2013 and although that may not be a big deal in Mr. Job’s estate, the estate tax rate increases to 55% and that is a big deal. So the question is: should the widow Jobs intentionally expose part of the estate to a 35% estate tax rate this year, but avoid any further tax on that portion at her death, or avoid any tax now but expose the estate to a 55% tax on her death?


10 posted on 11/22/2011 3:22:29 PM PST by Mr. Lucky
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To: yldstrk

I would lay down an enormous bet that she won’t sell a single share. All those years....he could have sold shares and he didn’t. I would suspect that he gave her precise instructions and there is an agenda/plan.


11 posted on 11/22/2011 3:22:39 PM PST by pepsionice
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To: TSgt

As libs shouldn’t they be paying twice what us Conservatives pay? Better yet, give it all to your gummit.

Pray for America


12 posted on 11/22/2011 3:26:58 PM PST by bray (Take the Cain Train off the Plantation)
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To: TSgt

good gravy!

she’ll still be a billionaire.


13 posted on 11/22/2011 3:29:21 PM PST by ken21
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To: TSgt

This is not an estate tax issue. It is an income tax issue (specifically a capital gains).

Jobs’ tax basis in the stock was whatever he paid for it. If he had sold it before he died, he would have been taxed on the gain. The heirs’ tax basis in inherited stock is the fair market value of the stock as of the date of Jobs’ death. They can sell now without any capital gains (if the stock never goes up in price, they will never have any capital gains).

The only point of the article is that they should sell now so they can diversify their holdings, rather than keep it all in just Apple and Disney stock.


14 posted on 11/22/2011 3:33:10 PM PST by kennedy (No relation to those other Kennedys.)
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To: TSgt
wonder if they still think they aren't paying enough taxes???
15 posted on 11/22/2011 3:50:26 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: TSgt

This is why I’m glad I’m not wealthy. I don’t have these concerns.

Rich people have problems in areas where I don’t have areas.


16 posted on 11/22/2011 3:55:36 PM PST by Retired Greyhound (.)
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To: Joe Boucher

they get what THEY VOTE FOR


17 posted on 11/22/2011 3:56:00 PM PST by personalaccts (Is George W going to protect the border?)
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To: Joe Boucher
The US Federal Government post Civil War has turned into a criminal enterprise run by lawyers and bureaucrats for their own perpetual enrichment at the expense of the productive class.

It has also ceased to be a representative Republic and has turned into a sure to fail Democracy.

The Founders didn't put a right to vote into the Constitution for a very simple reason; they didn't want imbeciles, those under 21, and lazy parasites to be enfranchised, in fact warned against it, leaving the States to determine who could cast ballots.

"Democracies have been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their death." James Madison

Remember democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide. John Adams: letter to John Taylor, April 15, 1814

The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.:Thomas Jefferson

This government will fall, and the New Republic which will rise in it's place will limit the franchise, incorporate term limits, and ensure dueling is legal.

18 posted on 11/22/2011 4:13:29 PM PST by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: personalaccts
they get what THEY VOTE FOR

They may vote for democrats, but they want to control and protect their money like the "evil, rich, greedy, republicans".

Besides, I believe that, deep inside many of those rich dem-voters, resides a conservative. Many of those people want to be seen as supporters of the "little people" and the downtrodden, and don't want to alienate the 47% who still have to spend money. The "evil, rich, greedy dems" want to have it both ways.
19 posted on 11/22/2011 4:23:37 PM PST by adorno (<)
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To: ken21
she’ll still be a billionaire.

X 6

20 posted on 11/22/2011 4:27:58 PM PST by Poison Pill
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To: adorno

It is the greatest injustice of democracy that one section of the people may carelessly vote away the rights of anther.

It is a failing of man to willingly do so rather then simply resign oneself to controlling oneself.


21 posted on 11/22/2011 5:48:46 PM PST by Monorprise
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To: TSgt

Steve should have picked last year to die like Steinbrenner and paid $0 estate tax.


22 posted on 11/22/2011 6:00:07 PM PST by Freedom_Is_Not_Free (We be fooked.)
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To: adorno

My mother was a yellow dog democrat. she always said poor get poorer under Republicans. My answer at age 7 was I want to be rich and I don’t want to give my money up. My mom sold some property in 1991 she bought it for $8,000 in ‘77. She sold the property for $53,000 and had to pay 28% in captial gains tax (she switched parties that day). Trust me we didn’t have alot growing up.


23 posted on 11/23/2011 3:08:36 AM PST by personalaccts (Is George W going to protect the border?)
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