You ready to pay Kama-Kama-Chameleon's 25% tax on the ultra-wealthy's unrealized capital gains?

[Marener]

If the proceeds of an estate give the heir a lump some of say $2 million, that can be considered an income — “from any source.”

We can argue against the inclusion of an inheritance as “income.” But as long as it’s presently characterized as income, it is taxable.

That has nothing to do with whether it’s a realized gain. It’s dnits now in my possession and controllable by me, it is realized.

It really does have more to do with it than you admit. If someone inherits an investment portfolio, those gains are taxed but unrealized.

 

[bendog]

It really does have more to do with it than you admit. If someone inherits a tax portfolio, those gains are taxed but unrealized.

By tax portfolio are you referring to income from investments?

 

[Marener]

By tax portfolio are you referring to income from investments?

I said tax portfolio but meant to say investment portfolio.

 

[Crepitus]

I do.
But if this nonsense comes to pass, I'll make sure I don't.

So you are in the top 1% of earners in the USA but still have time to stalk the message boards.

I must admit to being a bit skeptical.

 

[bendog]

I said tax portfolio but meant to say investment portfolio.

No problem. It's above my pay grade, but I have heard of people who put inherited property (upon which they received the stepped up basis of the value of the property when they inherited it) into a portfolio so as to make paying taxes on the income from the property (NOT the sale of the property) more manageable.

But they don't owe taxes on the inherited property unless they sell it, and then the stepped up basis helps them out. I've only seen rich folks sell that stuff if they think they can make more money by selling, paying the tax, and reinvesting.

 

[Marener]

No problem. It's above my pay grade, but I have heard of people who put inherited property (upon which they received the stepped up basis of the value of the property when they inherited it) into a portfolio so as to make paying taxes on the income from the property (NOT the sale of the property) more manageable.

But they don't owe taxes on the inherited property unless they sell it, and then the stepped up basis helps them out. I've only seen rich folks sell that stuff if they think they can make more money by selling, paying the tax, and reinvesting.

Inherited property is almost always below the estate tax limit so there’s no taxes on it. The person who gets it doesn’t have anything to pay.

If the estate is above the limit (like $11 million or something) they have to pay taxes on it which often involves selling assets. The point is the taxes are assessed on current market value whether it’s “realized” or not.

 

[BackAgain]

Currently, if a gain is not realized, it is not taxable.

Correct, so far.

The stepped up basis refers to inherited property, whereby the person inheriting the property gets his basis "stepped up" to the value the property is worth when he inherits it, and again, there is NO tax levied unless the income is realized by selling the inherited property.

As an “income” tax? True. But that’s why our ever avaricious politicians like the inheritance tax.

The taxation of unrealized gains is a fanciful idea by dems to tax people worth over 100 million on unrealized gains.

It is an absurd way by those folks to even claim they have a right to tax that wealthy group. A realized gain is not yet a gain at all. It simply is not “income.”

 

[BackAgain]

Your link had nothing about capital gains taxes.

Not true. But it was quite veiled. It incorporated agreement with prior Biden Admin proposals. Those included the tax on unrealized gains.

 

[Marener]

Not true. But it was quite veiled. It incorporated agreement with prior Biden Admin proposals. Those included the tax on unrealized gains.

Please post the language that “incorporated agreement with prior Biden Admin proposals”.

 

[BackAgain]

It really does have more to do with it than you admit. If someone inherits an investment portfolio, those gains are taxed but unrealized.

If I inherit a portfolio of stocks containing unrealized gains, I shouldn’t be taxed on it at all prior to a sale which then may include gains and losses.

 

[BackAgain]

Please post the language that “incorporated agreement with prior Biden Admin proposals”.

Read it again.

 

[Marener]

If I inherit a portfolio of stocks containing unrealized gains, I shouldn’t be taxed on it at all prior to a sale which then may include gains and losses.

Technically you aren’t, but the estate is.

 

[Marener]

Read it again.

Please post the language that says what you claim.

 

[Billo_Really]

Oh, joy, another totally unfazed by reality. Once you get to a certain point in wealth accumulation, you have ways to keep it out of the hands of the envious.

The only reason you got wealthy was because of the laws this country gave you. As a gesture of gratitude, you ate obligated to pay your fair share in taxes.

 

[BackAgain]

Please post the language that “incorporated agreement with prior Biden Admin proposals”.

Starting Aug. 16, 2024, the Harris campaign began to outline its economic plan. In doing so, it endorsed President Joe Biden's 2025 budget, whose revenue proposals included a "minimum [income] tax on billionaires," which the budget said would raise $500 billion over 10 years. Those unrealized capital gains would be taxed as income.

MSN

With that in mind, see this:

A Harris-Walz Administration will propose a new $40 billion innovation fund—doubling down on the $20 billion Biden-Harris Administration’s proposed innovation fund.

And

These plans will build on the Biden-Harris Administration’s efforts to cut red tape ….

And

In addition to ongoing efforts by Vice President Harris and President Biden to expand rental assistance for hard-pressed Americans including for veterans ….

But, also see:

https://www.wsj.com/politics/policy/kamala-harris-tax-plan-2024-election-10f95d18

See, also:

MSN

 

[Marener]

MSN

With that in mind, see this:


And



And



But, also see:

https://www.wsj.com/politics/policy/kamala-harris-tax-plan-2024-election-10f95d18

See, also:

MSN

Yes. All those media reports are what Hollie has claimed are only to be believed by weak and gullible people.

 

[BackAgain]

Technically you aren’t, but the estate is.

Ok. And that means what? That the eatate is paying for unrealized gains? That’s not a good idea.

First, the estate simply refers to the guy or gal who isn’t dead yet. Presumably, they paid taxes on their earnings and used some of the rest to buy stocks. Then, they die. The shares paid for with post tax dollars are not themselves yet sold. They are simply delivered to another owner. Why should that be considered “income?”

 

[Hollie]

Yes. All those media reports are what Hollie has claimed are only to be believed by weak and gullible people.

Hollie wants to know what "all those media reports" are that Marener is referring to.

 

[Marener]

Ok. And that means what? That the eatate is paying for unrealized gains? That’s not a good idea.

First, the estate simply refers to the guy or gal who isn’t dead yet. Presumably, they paid taxes on their earnings and used some of the rest to buy stocks. Then, they die. The shares paid for with post tax dollars are not themselves yet sold. They are simply delivered to another owner. Why should that be considered “income?”

Say what you want about whether it is or isn’t a good idea, the point is that the government has precedent for taxing unrealized gains. The estate is valued using current market value of things including stocks and bonds which means it’s taxed based on the value of property, not income which includes unrealized gains.

 

[Hollie]

Ok. And that means what? That the eatate is paying for unrealized gains? That’s not a good idea.

First, the estate simply refers to the guy or gal who isn’t dead yet. Presumably, they paid taxes on their earnings and used some of the rest to buy stocks. Then, they die. The shares paid for with post tax dollars are not themselves yet sold. They are simply delivered to another owner. Why should that be considered “income?”

The Dims will want to classify that an an inheritance tax or otherwise called a "death tax". It's more money than can spend.