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To the people here who live under socialism...; and think it is good or great....
Topic Started: Oct 27 2008, 11:57 PM (1,461 Views)
somerled
Member Avatar
Admiral MacDonald RN
Admiralbill_gomec
Nov 1 2008, 09:26 AM
somerled
Oct 31 2008, 11:03 PM
Admiralbill_gomec
Oct 30 2008, 02:21 PM
ds9074
Oct 30 2008, 02:16 PM
Admiralbill_gomec
Oct 30 2008, 02:07 PM
ds9074
Oct 30 2008, 02:03 PM
Dwayne
Oct 30 2008, 01:23 PM
^^^ Taxing inheritance is a tax on the living.
Well true I suppose, it depends which way you look at it as to whether it is a tax on a deceased persons estate on a tax on the person recieving the inheritence. Effectively though it is a tax on unearned income for the person inheriting which I prefer to taxes on earned income.
For example, if I die I leave everything to my wife. Why should the woman I married, the other (some say "better!") half of my marriage, have to pay a penalty to receive what I bequeath to her. She was right by my side, after all.
Under UK inheritance tax the spouse or civil partner is exempt from the tax.
Ours isn't.

Quote:
 
Now my advice for those who die,
Declare the pennies on your eyes.
'Cause I'm the taxman,
Yeah, I'm the taxman.
So contact your state or federal government and complaign about it , or start a public compaign to change how it applies or to have the tax recinded.

Or - like many rich people do in countries where it applies , transfer all your assets and savings to her and your kids before you die , or otherwize hide them so the tax man can't find them.

BTW , there is no inheritance tax here in Australia as far as I am aware off.
OR:

You vote for the candidate who wants to keep taxes low and not the candidate who wants to penalize any and all kinds of achievement.

We've been here before, and you're just re-spinning this in a bad way.

Technically Australia does not have inheritance taxes. Instead they have a capital gains tax on assets bequeathed from an estate. Sounds like six of one, half a dozen of the other.
I know people who have inherited deceased estates and property , including my parents , and I know for a fact that they did not have to pay to any capital gains tax on the sale of the properties.

Both my next door neighbours recently inherited too , one became a widow , the other when his last remaining parent died (she was quite well off and owned a nice home from what I gather). No capital gains taxes payable , no other taxes either.

My elderly Aunti Elaine died last year and her sisters will not have to pay any capital gains or other taxes on her estate either when the moneys are distributed (shared) according to her LWAT.

So maybe you need to check your facts since you clearly do not know what you are talking about.

Edited by somerled, Nov 1 2008, 09:31 PM.
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whitestar
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Captain
somerled
Nov 1 2008, 09:28 PM
Both my next door neighbours recently inherited too , one became a widow , the other when his last remaining parent died (she was quite well off and owned a nice home from what I gather). No capital gains taxes payable , no other taxes either.

My elderly Aunti Elaine died last year and her sisters will not have to pay any capital gains or other taxes on her estate either when the moneys are distributed (shared) according to her LWAT.

So maybe you need to check your facts since you clearly do not know what you are talking about.

Your leaving out one important fact Somerled, if the inheritors decide to liquidate the assets... Capital gains tax is due if there is a gain in value from it's original purchase value
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somerled
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Admiral MacDonald RN
whitestar
Nov 1 2008, 10:43 PM
somerled
Nov 1 2008, 09:28 PM
Both my next door neighbours recently inherited too , one became a widow , the other when his last remaining parent died (she was quite well off and owned a nice home from what I gather). No capital gains taxes payable , no other taxes either.

My elderly Aunti Elaine died last year and her sisters will not have to pay any capital gains or other taxes on her estate either when the moneys are distributed (shared) according to her LWAT.

So maybe you need to check your facts since you clearly do not know what you are talking about.

Your leaving out one important fact Somerled, if the inheritors decide to liquidate the assets... Capital gains tax is due if there is a gain in value from it's original purchase value
Well , I can only go on what I have been told happened in the instances I know of , and no capital gains tax was paid or was due.

Nor did mum and dad have to pay capital gains tax when granddad died and left dad his share of the family business (some retail properties , his home and other asset) . Not that mum and dad and the other partners (Stan and Elma) sell the business assets and shares right away but kept the business going. (For several years until mum and dad wound up the family business on retiring (which then attracted some capital gains tax)), There was no tax of any kind on sale of granddads house and his private possessions (furnature and the like).

Edited by somerled, Nov 1 2008, 11:20 PM.
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whitestar
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Captain
The capital gains tax is only applied to dwellings that are not used for residence (rented out for investment purpose).
If you sold your residence, no capital gains, if you sell your investment home, it is taxed under capital gains tax... same rules apply to inherited property assets
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somerled
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Admiral MacDonald RN
whitestar
Nov 1 2008, 11:45 PM
The capital gains tax is only applied to dwellings that are not used for residence (rented out for investment purpose).
If you sold your residence, no capital gains, if you sell your investment home, it is taxed under capital gains tax... same rules apply to inherited property assets
I know that.

It's a legitimate tax applied to such investments.

Still , it didn't apply in the instances I mentioned until such time as the family business was wound up (I wasn't interested in it, nor my brother, dad would have liked me to take over and had made me director and had been getting me to look after some business for him , but retail is not my scene and I was earning very good money as an engineer and at the time looked like I had a job as long as I wanted it .... a few years later the Steelworks was closed and the job evaporated).

Edited by somerled, Nov 2 2008, 12:31 AM.
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ds9074
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Admiral
somerled
Nov 1 2008, 09:18 PM
whitestar
Nov 1 2008, 10:37 AM
ds9074
Nov 1 2008, 10:16 AM
whitestar
Nov 1 2008, 10:12 AM
"Personally I would replace it with a local income tax and I have voted for a party that proposes such a system."
Your advocating a lower tier of govt a right to income tax? I don't even agree with the one already in place never mind another grab at the working man's income. There was a time of NO income tax though I understand todays modern society could not be sustained without it... you have to draw the line somewhere or you will have a situation where govts have a legal right to a bigger share of your income than you take home.
Local government sets and collects the Council Tax. Remove their power to tax in that way and yes give them a limited power to add an amount to income tax. I am not talking about unlimited power for them to tax income, the range allowed would be set by Parliament. It wouldnt be aimed at raising any more revenue than the council tax, but it would link the amount you pay to your ability to pay it.
Thats how it starts, low range, set by law, creeping up with ammendants to the law, slowly but surely untill it hurts. That little percentage that reasonable people couldn't possibly argue becomes a giant hole in your income.. How much was the VAT when first introduced? has it risen?
I think a fairer means of calculating council taxes (rates) would be to annually assess the market value the land and the building / s on the land and to have calculate the rates based on this.

If the resident has several acres of prime land and big expensive house on it , he pays more on a prorata basis than someone who has a standard block and more modest home on it. And if the building (it might be block of flats or a duplex or an appartment building say is a money earner , then a cut of rents goes to rates on top of the rates as well . Couldn't be fairer .
What you describe is basically how the Council Tax in the UK is run, except it is based on a 'notional' value set years ago.

It is still an unfair tax. The valuation bands just reduce this effect a bit. It still does not get over the fact that is it not based on the persons ability to pay so it therefore hits lower and middle earners most. For higher earners its small change, even with the valuation bands it doesnt go up that much and for very low earners but mainly the unemployed its reduced by a rebate.
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somerled
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Admiral MacDonald RN
That's how council rates are calculated here too.
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Admiralbill_gomec
UberAdmiral
somerled
Nov 1 2008, 09:28 PM
Admiralbill_gomec
Nov 1 2008, 09:26 AM
somerled
Oct 31 2008, 11:03 PM
Admiralbill_gomec
Oct 30 2008, 02:21 PM
ds9074
Oct 30 2008, 02:16 PM
Admiralbill_gomec
Oct 30 2008, 02:07 PM
ds9074
Oct 30 2008, 02:03 PM
Dwayne
Oct 30 2008, 01:23 PM
^^^ Taxing inheritance is a tax on the living.
Well true I suppose, it depends which way you look at it as to whether it is a tax on a deceased persons estate on a tax on the person recieving the inheritence. Effectively though it is a tax on unearned income for the person inheriting which I prefer to taxes on earned income.
For example, if I die I leave everything to my wife. Why should the woman I married, the other (some say "better!") half of my marriage, have to pay a penalty to receive what I bequeath to her. She was right by my side, after all.
Under UK inheritance tax the spouse or civil partner is exempt from the tax.
Ours isn't.

Quote:
 
Now my advice for those who die,
Declare the pennies on your eyes.
'Cause I'm the taxman,
Yeah, I'm the taxman.
So contact your state or federal government and complaign about it , or start a public compaign to change how it applies or to have the tax recinded.

Or - like many rich people do in countries where it applies , transfer all your assets and savings to her and your kids before you die , or otherwize hide them so the tax man can't find them.

BTW , there is no inheritance tax here in Australia as far as I am aware off.
OR:

You vote for the candidate who wants to keep taxes low and not the candidate who wants to penalize any and all kinds of achievement.

We've been here before, and you're just re-spinning this in a bad way.

Technically Australia does not have inheritance taxes. Instead they have a capital gains tax on assets bequeathed from an estate. Sounds like six of one, half a dozen of the other.
I know people who have inherited deceased estates and property , including my parents , and I know for a fact that they did not have to pay to any capital gains tax on the sale of the properties.

Both my next door neighbours recently inherited too , one became a widow , the other when his last remaining parent died (she was quite well off and owned a nice home from what I gather). No capital gains taxes payable , no other taxes either.

My elderly Aunti Elaine died last year and her sisters will not have to pay any capital gains or other taxes on her estate either when the moneys are distributed (shared) according to her LWAT.

So maybe you need to check your facts since you clearly do not know what you are talking about.

Thanks, but I did check my facts. :wave2:
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whitestar
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Captain
Admiralbill_gomec
Nov 2 2008, 12:19 PM
Thanks, but I did check my facts. :wave2:
From your arguments here so far you haven't checked your facts, or if you have, your embellishing them to your own argument.

Fact: Capital gains tax is NOT payable on inherited property assets that were used for residence, if it is an investment prop the tax is only due after sale and only if there is a "gain", nor is it payable on any other assets that do not gain in value after purchase, including monetary assets other than income producing

http://www.ato.gov.au/taxprofessionals/pathway.asp?pc=001/002/026
Edited by whitestar, Nov 2 2008, 09:39 PM.
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Dwayne
Profanity deleted by Hoss
^^^ Um, that is Australian law... so while I don't know the specifics of the American law, I think that it's probably safe to assume that it is different.
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whitestar
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Captain
Dwayne
Nov 3 2008, 08:38 AM
^^^ Um, that is Australian law... so while I don't know the specifics of the American law, I think that it's probably safe to assume that it is different.
Yep, that's right. The Admiral is arguing that the Australian capital gains tax can be interpreted as an inheritance tax when applied to assets inherited but he is bending the facts some to suit his point
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Admiralbill_gomec
UberAdmiral
whitestar
Nov 3 2008, 09:28 AM
Dwayne
Nov 3 2008, 08:38 AM
^^^ Um, that is Australian law... so while I don't know the specifics of the American law, I think that it's probably safe to assume that it is different.
Yep, that's right. The Admiral is arguing that the Australian capital gains tax can be interpreted as an inheritance tax when applied to assets inherited but he is bending the facts some to suit his point
Can this tax be used in lieu of an inheritance tax? Yes it can. Doesn't mean it always is, but it can.

Have a nice day.

I'm not bending anything.

:wave2:
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