OTC: Not going to argue with your point, however you do not have any real knowledge of how taxes work. You said,
Lets say i was lucky enough to have a granfather that left me land valued at $2 mil.
It is producing nothing for me and I dont have the money to pay a 30%(?) tax on the value of my land. Must i now sell 30% of my land just so I can pay the tax? Guess what? If i do, then i have to sell some more to pay the tax that is owed on the profit i made selling the 30%.
Just because i was left a piece of land valued at 2 mil that doesnt mean I all of a sudden have fat bank account. If i do sell the land i will have to pay tax on it when i sell it. Until then, i have made nothing on it.
So i should pay 30% up front and then when i sell my remaining 70% of the land my grandfather wisely invested in I must pay taxes on that too?
Firstly, the estate would pay the tax if any is involved not you as the beneficary. Secondly if you received the property and then sold it, you would use the stepped up basis of the property with it's value at date of death in most cases and not owe any taxes on the sale. Obviously if taxes were owed and the estate could not afford them, then the estates executor would sell off the property. Currently the federal exemption is $2 million, so you would not owe any taxes.
Don't blow your windfall. LOL
Signatures are so yesterday!
AI
