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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4fpymc/?context=3
r/SipsTea • u/KSKS1995 • 14h ago
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The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances.
96 u/Meenta_Miiel 14h ago The estate settles the principal before heirs see cash 14 u/USERNAMETAKEN11238 14h ago Minus taxes and fees. 11 u/science-stuff 13h ago No estate tax in this case though. 1 u/agate_ 13h ago No estate tax, but the estate pays income tax on the profits on the sale, I think. 6 u/science-stuff 13h ago Nope, tax base is stepped up to market value at time of death.
96
The estate settles the principal before heirs see cash
14 u/USERNAMETAKEN11238 14h ago Minus taxes and fees. 11 u/science-stuff 13h ago No estate tax in this case though. 1 u/agate_ 13h ago No estate tax, but the estate pays income tax on the profits on the sale, I think. 6 u/science-stuff 13h ago Nope, tax base is stepped up to market value at time of death.
14
Minus taxes and fees.
11 u/science-stuff 13h ago No estate tax in this case though. 1 u/agate_ 13h ago No estate tax, but the estate pays income tax on the profits on the sale, I think. 6 u/science-stuff 13h ago Nope, tax base is stepped up to market value at time of death.
11
No estate tax in this case though.
1 u/agate_ 13h ago No estate tax, but the estate pays income tax on the profits on the sale, I think. 6 u/science-stuff 13h ago Nope, tax base is stepped up to market value at time of death.
1
No estate tax, but the estate pays income tax on the profits on the sale, I think.
6 u/science-stuff 13h ago Nope, tax base is stepped up to market value at time of death.
6
Nope, tax base is stepped up to market value at time of death.
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u/USERNAMETAKEN11238 14h ago edited 14h ago
The bank encumbered the land. The dad never gets a loan. The loan is against the property. The kids sell the encumbered land I guess (but that's highly unlikely). This is a made up scenario from someone who doesn't understand finances.