What if we impose a death tax....

[flame3132]

We pay to the goverment, prior to the passing of the estate to the heir upward of a third of what the person left behind.

[Kipper is King]

That would suck for the next of kin.

[Tron_fdc]

That's called a capital gain, and we already have one. And it's a heck of a lot higher than a third, it's more like 50% of whatever gain you just made.

[Montana Moe]

I'm not an expert on the U.S. tax code, but we do have an estate tax. Personally, I don't believe it is fair to be able to tax money that has already been taxed.

Assuming the deceased earned an income they were taxed on that income by the federal govt. as well as most of the states. Investment profits are taxed, real estate/property transactions are taxed.

When that wealth is passed on, it would be taxed with an estate tax.

I may be wrong on this, but then the person that inheirits the wealth would also have that wealth taxed as income. Taxing the same wealth at least three times seems like overkill to me.

I could be completely out of my gourd on this, and will likely be corrected by someone that actually knows what they are talking about, but that is my .02.

[Tron_fdc]

Originally Posted by fotze

I'd rather have a "lack of effort in preparing a new thread" tax. How about a sentence or two more to clarify what you mean. Might be an interesting topic.

Yeah, I had to read it a few times but I think what he means is "What do people think about taxing the estate of someone who died, before said estate goes to an heir".

It already exists.

[MoneyGuy]

Originally Posted by Tron_fdc

That's called a capital gain, and we already have one. And it's a heck of a lot higher than a third, it's more like 50% of whatever gain you just made.

Not so. Most of us are in Alberta, where the max cap gains tax is 19.5%.

What is the reason for this thread? It seems an unlikely thread topic.

[Tron_fdc]

Originally Posted by MoneyGuy

Not so. Most of us are in Alberta, where the max cap gains tax is 19.5%.

What is the reason for this thread? It seems an unlikely thread topic.

Huh. I just went through this with my grandpa's estate, and his shares in our company, and for some reason I had a higher number stuck in my head.

Although the gaping hole left in my arse by revenue canada could be throwing off my memory.

[LouCypher]

Taxes on taxes is the governments way of admitting it is in over its head.

[MoneyGuy]

Originally Posted by Tron_fdc

Huh. I just went through this with my grandpa's estate, and his shares in our company, and for some reason I had a higher number stuck in my head.

Although the gaping hole left in my arse by revenue canada could be throwing off my memory.

Capital gains are half tax free so you're only taxed only half of the cap gain. If you're in the top tax bracket, which in Alberta is 39%, it's 19.5% (.5 x .39 = 19.5%). This was your grandpa's estate, so it's his tax bracket in the year of death that determines the taxes paid. Don't forget to add any dividends to boost the adjusted cost base, which reduces the taxes owed.

[Ford Prefect]

There's already a death tax ... the GST that's charged on funeral/burial/cremation services. And then there's capital gains. And why in blazes are those scum sucking politicians entitled to 1/3 of the wealth that a person sweats and bleeds for their lifetime to amass? They already tax us at every step of the way. Why on earth should they be able to tax us when we're in the grave? Mutter, mutter, egg sucking vermin, mutter, mutter.

[troutman]

http://www.fiscalagents.com/newslett...tainties.shtml

There are no estate taxes or succession duties in Canada. However, taxes upon death have not disappeared. When a person dies, there is a ‘deemed disposition’ of all capital property. What does that mean? It means that the government treats all your property (unless jointly held) such as stocks, bonds, RRSPs, real estate, etc as sold at fair market value on the day of your death. Your estate will be required to pay capital gains tax on that property. This applies to your RRSP if you do not have a spouse to whom you can transfer it. Careful planning can reduce or defer the taxes owing. Without an estate plan, you could lose nearly half of the value of your gains to taxes. While your Executor may claim full personal exemptions on your final income tax return, your estate may end up paying taxes at the highest tax rate (over 50%). If you do not have a Will, or if your Will has not been updated recently, it may be a good time to get the job done to avoid tax complications.


What is Probate?
‘Probate’ is the recognition by the provincial court of the validity of your Will and the appointment of the person named as your Executor. Granting of the ‘letters probate’ is notice to the public that your Will complies with the basic formal requirements and that the Will was not being challenged at the time of application.

Reducing Probate Fees
In some provinces, the Executor must apply to the court for ‘letters probate’ in order to begin administering an estate. These fees are payable to the provincial government based on the value of certain assets in your estate. There have been increases over the years in provincial probate fees. There are ways to arrange your affairs to reduce these probate fees. Again, estate planning helps identify these issues and reduce any negative impact on your estate.


I think ONT and BC have high probate fees, which is in essence a death tax. AB has a maximum $400 probate fee.

[Slava]

Well if you own property in the US, parents come from there or spend over 183 days a year there you could already owe back taxes. People don't often realise this, but the IRS considers you a citizen in these cases, and they are less than pleasant to deal with!

If you fit these things you could wake up to an awful surprise one day...if they got Capone don't think that they won't get you!

[killer_carlson]

An estate tax is a terrible idea because they already get you in the ways that Troutman outlined above (and more).

Any more tax at all is a terrible idea.

[killer_carlson]

Right Fotze - we should make playing the lottery manditory and the government gets 10% of all winnings plus an additional 35% of wins over $10,000.00. The money won would also count as income for income tax purposes.