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Paul Ryan Expected to Retire After Midterms

I mean the carrying on a property like that have to be pretty significant what is your Aunt paying in property taxes
 
My aunt bought a bunch of property for relatively cheap in northern CA AND built a bunch of houses on it herself. Now her estate is valued ar more than 5mil even though she put around 500k into it over 40 years. Now she won't be able to pass the land down to my cousins because they won't be able to afford the taxes, or at least that's what she was saying.

Yeah, I thought about this recently. My uncle died about a month ago. He had about a $15 million beach front house in eastern Long Island that his two sons will inherit, but neither can even remotely pay the inheritance taxes. So, they will be forced to sell it. In the end, my poor cousins will only get about $3.5 million each after they sell the house and pay the taxes. 39 and 43 years old...poor guys what are they going to do? The 39 year old is married with 2 kids...that means less than $1 million per person.
 
Isn’t this ryan and his camp just trying to get out ahead of the stink that will come from a 2018 bloodbath? He knows it’s coming. He’ll run for senate; governor; president...something down the road. He’s painting himself, further and falsely, as the intellectual that’s achieved his goals in Washington (bullshit tax reform). He’s really a hack, but people seem to be too dumb to notice.
 
My aunt bought a bunch of property for relatively cheap in northern CA AND built a bunch of houses on it herself. Now her estate is valued ar more than 5mil even though she put around 500k into it over 40 years. Now she won't be able to pass the land down to my cousins because they won't be able to afford the taxes, or at least that's what she was saying.

So, they can’t afford estate tax or property tax? Sounds like you are talking about something different than estate tax.
 
My aunt bought a bunch of property for relatively cheap in northern CA AND built a bunch of houses on it herself. Now her estate is valued ar more than 5mil even though she put around 500k into it over 40 years. Now she won't be able to pass the land down to my cousins because they won't be able to afford the taxes, or at least that's what she was saying.

I'm pretty sure this is one of the scenarios that the estate tax is designed to prevent. Families just compiling wealth over generations without paying taxes on those assets. Why should families be able to compile landmasses over generations without the public receiving the taxable share?
 
she earned that money for her family by investing in and developing property to create jobs and make the community stronger.....oh, wait, she just bought it and it happened to become more valuable
 
she earned that money for her family by investing in and developing property to create jobs and make the community stronger.....oh, wait, she just bought it and it happened to become more valuable

I'm not saying a family shouldn't be able to reap the rewards from an investment that becomes valuable. But they can do that by selling it or paying the taxes on the inheritance and keeping it.
 
She needs to talk to a competent estate planning attorney. I don't even do estate tax and I know this game. Step 1, put the land into a family limited partnership, step 2, start making gifts of non-voting minority LP interests to kids that can be valued below annual gift tax threshold, if she gets started early she can get most of it out of her estate before she dies.

also remember that even if she does nothing, the first 5 million passes tax-free. You said the land is worth "more than $5 million" but not how much more. If it's worth $5,000,001, the estate tax applies only to the $1.

The estate tax is so easy to plan around that only the truly filthy rich ever pay it. The number of these alleged woe-is-me landowners and "family farmers" who will ever pay it is miniscule. Don't fool yourself, what this is really about it not your aunt, it's about getting people like Don Jr. and Eric Trump an even bigger pile of Scrooge McDuck money when their dad kicks the bucket.
 
She needs to talk to a competent estate planning attorney. I don't even do estate tax and I know this game. Step 1, put the land into a family limited partnership, step 2, start making gifts of non-voting minority LP interests to kids that can be valued below annual gift tax threshold, if she gets started early she can get most of it out of her estate before she dies.

also remember that even if she does nothing, the first 5 million passes tax-free. You said the land is worth "more than $5 million" but not how much more. If it's worth $5,000,001, the estate tax applies only to the $1.

The estate tax is so easy to plan around that only the truly filthy rich ever pay it. The number of these alleged woe-is-me landowners and "family farmers" who will ever pay it is miniscule. Don't fool yourself, what this is really about it not your aunt, it's about getting people like Don Jr. and Eric Trump an even bigger pile of Scrooge McDuck money when their dad kicks the bucket.

OOOOOOOOOOOOOPPPPPPPPPPPPPPPPPSSSSSSSSSSSS

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I'm not saying a family shouldn't be able to reap the rewards from an investment that becomes valuable. But they can do that by selling it or paying the taxes on the inheritance and keeping it.

no i wasn't disagreeing with you, i was mocking the idea of crying about a woman who happened to make a good return on buying and sitting on land
 
She needs to talk to a competent estate planning attorney. I don't even do estate tax and I know this game. Step 1, put the land into a family limited partnership, step 2, start making gifts of non-voting minority LP interests to kids that can be valued below annual gift tax threshold, if she gets started early she can get most of it out of her estate before she dies.

also remember that even if she does nothing, the first 5 million passes tax-free. You said the land is worth "more than $5 million" but not how much more. If it's worth $5,000,001, the estate tax applies only to the $1.

The estate tax is so easy to plan around that only the truly filthy rich ever pay it. The number of these alleged woe-is-me landowners and "family farmers" who will ever pay it is miniscule. Don't fool yourself, what this is really about it not your aunt, it's about getting people like Don Jr. and Eric Trump an even bigger pile of Scrooge McDuck money when their dad kicks the bucket.

Yeah, the only thing I remember from trusts and estates from law school (and I sure as hell don't practice in that area) is the professor repeating that you're an idiot if you don't have your land in some sort of partnership or trust.
 
Because it is not about the money but about our families property.

Serious question - and I'm not trying to be a dick - but why does your family need a bunch of property with a bunch of houses on it? Maybe I'm viewing ownership of property and real estate as an investment rather than a "I want to leave a legacy for generations of my family to come" but why did she buy this property, sink "only" $500k into it, and build a ton of houses if not for the future profits?
 
Yeah. Again, it doesn’t appear the estate tax is the issue here. It shouldn’t be. If they have let it be, they are not capable of maintaining a multi million dollar estate, anyway. They are better off selling before they get themselves in more financial trouble. I can sympathize with family wanting to hold on to property they grew up with but in this case I don’t think you understand their obstacles to do that.
What makes more sense is that the property tax on a $5mil estate is too burdensome.
 
Without getting too far away from the original topic, I also don't think it's too much to ask to pay estate taxes on property that you "only" invested $500k on if the property has massively appreciated. You sunk a good chunk of change to improve the land, but the bulk of the profitability is from the value of land increasing over the time that you held it. Good foresight to buy the land though.
 
The Estate tax regime is a great financial deal for most people because you get a step up in basis on the exemption amount.
 
Some are saying the upstart steelworker who is going to run against Ryan has a real shot at winning. Because of this Ryan is thinking about "retiring" to avoid having lost his last election before running for POTUS in 20 or 24.
 
Some are saying the upstart steelworker who is going to run against Ryan has a real shot at winning. Because of this Ryan is thinking about "retiring" to avoid having lost his last election before running for POTUS in 20 or 24.

i think Ryan's shot may have passed him by with Trump and this fiasco. he is tainted now and would be surprised if he got a shot in 2024.
 
i think Ryan's shot may have passed him by with Trump and this fiasco. he is tainted now and would be surprised if he got a shot in 2024.

This tax bill may be the last nail in his presidential coffin.
 
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