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Posted on 11/24/2012 6:59:49 AM PST by Lorianne
They Are Going To Make It Nearly Impossible To Pass On A Farm Or A Business To Your Children
And corporate stock is subject to the gift tax and death tax. Pay up sucka, the people need their Obamaphones.
The laws were like this years ago and that is why the ranch my husband’s family owned had to be sold when his father died, no way there was enough money to pay the taxes without selling the ranch. That issue was fixed when it was realized that was the number one reason family farms and ranches were going under. Now looks like it will be a problem again. Add to it that many of the land valuations are unrealistic, many ranches and farms cannot actually be sold for what they are valued at.
True, but then you lose other benefits that are in place for individual/family owned farms. One major drawback is the question of whether minors in the family are allowed to legally work on a “corporate owned” business...if they can’t work on the family ranch/farm growing up they don’t learn the necessary skills/work ethic to be able to take over the business.
“collective” . . . . . a word I suspect that is going to be used more and more by Dhimmicrat leaders; just to get us accustomed to the idea.
Therein lies the value of planning ahead. Most farms are privately owned but could be converted to corporations with the heirs in control. When the parents are gone the corporation lives on.
Yup, most of his fortune was made up of insurance companies, which the rich use to pay off the death tax. That's the reason he's such a big proponent of the death tax or 0bamacare, he makes out on it. Buffet never supports anything that will hurt his bottom line, but try to get progressives who see him as some benevolent billionaire to believe that.
The thing is, people like him, Gates , the Kennedy's can afford to set up complex shelters to avoid a good part of this government ripoff. In other words they aren't really affected. It's the farmer or small business who's net worth is tied up in land buildings or equipment, without a lot of cash reserves who gets whacked by this. That's why the family farm is largely a thing of the past. Of course , this is all by design.
Correct! This should be posted on billboards every time congress starts debating the death tax.
Whether stock is issued depends upon type of corp. formed. Ownership would be to the corporation not the children.
But for certain trying to plan at the funeral is a little too late.
if you have a farm or business... form a trust and sell the business to the trust and you and your kids into it.
the trick is... a trust is a legal entity... and cannot die
if the current head of the trust dies, another would take their place... ie: your kids
death taxes never come into the picture.
you could also have the trust hold all your property as well... again keeping the greedy fedgov from touching it
(if they move to change the laws regarding a trust... the just make a corporation with shareholders and a CEO... same result)
The only down side is that some lawyer will get a fee to cut the paper.
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There are lots of cheap ways, including free...
I’ve used these guys twice!
http://www.bizfilings.com/incorporation-search-landing.aspx?vendorid=B737&KWD=set%20up%20corporation
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How to Set up a Corporation Without a Lawyer
(By an eHow Contributor)
Setting up a corporation sounds impressive and complex, but the truth is that to create a business, you simply have to list a few of the company’s facts and essentials and file an application with the Secretary of State. It’s running a new company and facing the many challenges of building a business that will really require professional assistance.
Read more: How to Set up a Corporation Without a Lawyer | eHow.com http://www.ehow.com/how_2040117_corporation-without-lawyer.html#ixzz2D9gIsjIO
Couldn’t you get around this through setting up a trust, or incorporation?
Add to it that many of the land valuations are unrealistic, many ranches and farms cannot actually be sold for what they are valued at.
Depends on what the valuation is based on. Some locales like to set property values high enough to add tax money without having to raise the tax rate.
There is a solution for that: the valuation of the land sets the bar price for the land if it has to be sold. Can't sell it for the taxable value? The tax assessor has to revalue the land for the sale price, and refund excess taxes paid by the previous owners for the past 25 years.
And if the government wants to buy the land, the bid price is the value set by the government for tax purposes. Those two measure would stop the inflation of values.
Create a corporation. Place all privately held stocks of that corporation into a blind trust. Hire family as employees of said corporation. Stocks never change hands, so a dead employee changes nothing, no taxes paid. No?
Ranting about a tax will never save a penny, planning on how to avoid a tax will.
One business that I am familiar with was actually a group of corporations. One owned the the buildings, another the equipment, another the land, and so on. All were incorporated in Delaware and all had the same directors, members of one family.
In effect the business leased eveything from its self. There are ways to keep a business out of the tax man’s hands.
Exactly.
the ‘government’ wants the land and what it produces...or prohibits.
America will be a 3D museum.
I like the creative thinking on this thread - but I don’t give a rat’s a$$ about the death tax - this is what the dufus farmers in Iowa voted - I hope choke on it.
You don't think that there is anything to complain about on this subject?
Only emotional ties get in the way? All one needs to do is understand the system?
You think that somebody having to convert their family farm into corporation and all of the down side aspects of that is a good thing. And how long do you think it will be before the government starts screwing around with your beloved convert-it-to-a-corporation "system"? And what about people who have assets over a million who don't have a farm of business?
Unbelievable.
That seems a small problem to overcome in view of not having the family farm to work on at all.
I am convinced that was part of the reason for the BLM and Forest Service. When you look at some of our Western states being over 90% owned by the Federal Government it's hard to think otherwise
I am really developing an intense dislike for Teddy Roosevelt
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