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angrypuppy
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Joined: 13 Apr 2001
Posts: 32752
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 Posted: Thu Oct 28, 2021 1:31 pm Post subject: |
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| Cutheon wrote: | | angrypuppy wrote: | | Cutheon wrote: | | ^Can you combine a GRAT with a stepped-up basis? That would be truly incredible, if so. You'd essentially escape all tax liability in perpetuity |
Yes you can provision a stepped-up basis within the GRAT. You can also play a shell game with multiple GRATs, each containing a minority interest in a pool of assets. This prevents the premium associated with controlling interest, and the structure can be time consumptive for the IRS to evaluate and challenge. The IRS doesn't like to screw with the wealthy, they are outgunned. |
Genius. I understand morally it's wrong - and I'm with you on your righteous (and rightful) indignation - but that is some clever (bleep), isn't it? |
Yes it is. The tax laws with loop holes all drafted up the by highly-paid tax attorneys and presented to Congress by wealthy campaign donors. Practices like the shell game with minority interest are dreamed up by accountants who understand finance and then spread like wildfire throughout the industry. |
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Drifts
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Joined: 22 Nov 2004
Posts: 28374
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| Posted: Thu Oct 28, 2021 6:54 pm Post subject: |
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| Halflife wrote: | | his businesses are great, unfortunately, he supports an anti-abortion cause. |
I admire him for supporting anti abortion causes
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"Now, if life is coffee, then the jobs, money & position in society are the cups. They are just tools to hold & contain life, but the quality of life doesn't change. Sometimes, by concentrating only on the cup, we fail to enjoy the coffee in it." |
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DaMuleRules
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Joined: 10 Dec 2006
Posts: 52650
Location: Making a safety stop at 15 feet.
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| Posted: Thu Oct 28, 2021 7:00 pm Post subject: |
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| Drifts wrote: | | Halflife wrote: | | his businesses are great, unfortunately, he supports an anti-abortion cause. |
I admire him for supporting anti abortion causes |
That's not the kind of endorsement you think it is.
_________________
You thought God was an architect, now you know
He’s something like a pipe bomb ready to blow
And everything you built that’s all for show
goes up in flames
In 24 frames
Jason Isbell
Man, do those lyrics resonate right now |
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Drifts
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Joined: 22 Nov 2004
Posts: 28374
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| Posted: Thu Oct 28, 2021 7:05 pm Post subject: |
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| DaMuleRules wrote: | | Drifts wrote: | | Halflife wrote: | | his businesses are great, unfortunately, he supports an anti-abortion cause. |
I admire him for supporting anti abortion causes |
That's not the kind of endorsement you think it is. |
ok time for me to read up on this. kinda confused right now.. lol
_________________
"Now, if life is coffee, then the jobs, money & position in society are the cups. They are just tools to hold & contain life, but the quality of life doesn't change. Sometimes, by concentrating only on the cup, we fail to enjoy the coffee in it." |
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DuncanIdaho
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Joined: 26 Apr 2004
Posts: 17244
Location: In a no-ship
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| Posted: Thu Oct 28, 2021 8:00 pm Post subject: |
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| angrypuppy wrote: | Not that anyone cares, but I've been posting about GRATS for a while now:
| Quote: | The foundation of Knight’s strategy is the grantor-retained annuity trust, or GRAT. His first step was to set up nine GRATs, which successfully transferred Nike shares now worth $6.1 billion to heirs tax-free from 2009 to 2016. Two other GRATs that show up in public filings received about $970 million of unspecified assets from Knight. The filings don’t disclose the ultimate beneficiaries, but Lord says that, based on how family wealth transfers usually work, they might include the family of Knight’s late son, Matthew, who died in 2004.
Officially, gifts are taxable: If you send someone more than $15,000 per year, you’re supposed to file a separate gift tax return, with the total counting toward your $11.7 million lifetime estate-and-gift-tax exemption. (Double that for married couples.) Once you reach that threshold, you must pay a 40% levy. But giving heirs the right to profit, risk-free, from your investments? Not a taxable gift if you route it through a GRAT. “It looks like the heirs didn’t receive anything of value, but in fact they have been given all of the upside growth potential,” says Ray Madoff, a law professor at Boston College. |
https://www.bloomberg.com/features/how-billionaires-pass-wealth-to-heirs-tax-free-2021/?utm_source=pocket-newtab
In short, the wealthy have conduits to escape the bull (bleep) that Rush Limbaugh and the other right wing idiots (bleep) and moan about: the so-called "death taxes". It's all a con job as the rest of us will have our bequests taxed after we pass. The rich on the other hand pay almost nothing, and that includes the Buss family (one of the reasons why I've been a lukewarm fan in recent years, I won't apologize for my disgust and ambivalence).
Take a look at the link. It discusses the Nike/Knight con game when he purports to give his wealth to charity (the usual pretense of being high-minded by the one percent). That isn't the case, at least in the economic form (I'm sure there's a CLAT in there somewhere). That money is going to his heirs. Meanwhile the rest of us suckers are paying full taxes. That's your two party system at work, at least in their attempts to get their campaigns financed by the rich. I hope Biden cleans this mess up, it is long overdue. |
Thank you for the link. That (bleep), along with the series I posted a while back on how the ultra wealthy are abusing Roth IRAs (https://www.propublica.org/series/the-secret-irs-files), makes my blood boil. |
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