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They Are Going To Make It Nearly Impossible To Pass On A Farm Or Business To Your Children

Economic Collapse Blog: If you have a farm or a small business, would you like to pass it on to your children when you die? Well, unless Congress does something, it is going to become much, much harder to do that starting next year. Right now, there is a 5 million dollar estate tax exemption and anything above that is taxed at 35 percent. But on January 1st, the exemption will go down to 1 million dollars and the tax rate will go up to 55 percent. A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates. But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law. There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars.

According to the American Farm Bureau, approximately 97 percent of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars. That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches. Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations. Needless to say, most farm and ranch families do not have that kind of cash lying around. Most of them are just barely making it from year to year. So this change in the tax law is going to greatly accelerate the death of the family farm in America.

This is also going to devastate many family-owned small businesses. Many small businesses don't make much money, but they have buildings or land or assets worth millions of dollars. Children that may have wanted to continue the family legacy will be forced to sell because of the massive tax bill that they get from Uncle Sam. This is an insidious cruelty, and it shows just how broken our system has become.

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surely more taxes will

surely more taxes will improve the lives of everyone, especially the middle and lower classes, at least that is what we're being told.

It's getting to the point

you can't even let the government know you died.

this is why I bought Life

this is why I bought Life insurance. I have both a business and a ranch. I got enough life insurance so my wife or kids could pay the confiscation tax. This is the lowest of the low of taxes. A man works his entire life, pays taxes on that money. saves and does things wisely, then the Federales come in and steal it so your heirs can not use that mney to further themselves. What this tax is, is pure protection for elite families that do not wish to have other families accumulate wealth over decades/centuries. Rothschilds, etc love this tax.

Not

trying to say you're wrong...but doesn't it hurt the Rothschilds and other insanely rich as well? Or because they're so rich does it just not affect them as much?

I think

that's why they have things structured in trusts

I

think trusts are subject to the same taxes.

bump

Thanks for posting.

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exactly

I live out on eastern Long Island. When growing up we were fishing and farming communities. Then in the early 70's we became the "hamptons". The assessed values on property escalated to one million an acre. When the Farmer died the children had no way of paying the estate taxes and had to sell some or all of the properties to developers. Most of our farms are done. No more Long Island Potatoes, no dairy farmers, the survivors sold half and started planting sod for the mansions. I remember when hillary became our senator she came out to " help" the farmers with some sort of federal handout. Thanks
I remember during that time I wrote letters to the local papers explaining this was government business as usual. The government causes a problem then comes in with a pre arranged fix that makes the current farmer dependent of the state and that he would not survive without their help. They steal your teeth sell them back to you and your supposed to be grateful.
Our fishing industry went through the same thing here. Their homes were reassessed and their taxes became larger then their original mortgage payment. Between that and the over regulations they became dependent on the state to survive the horrors that the state actually created.
I am glad to see many more people waking up to the lies and thievery perpetrated on the American People. It has been lonely for the last several decades.
The revolution is gaining steam. hey, maybe I'm not crazy after all.

Peace

Better late than never...

I suppose.

Hopefully not too late though.

(Sorry you've had to deal with all of that BS. It's everywhere, really.)

What would the Founders do?

"Give me liberty. Give you death!" - Evil Corporate Motto

"In the eye of rewritten overlord law, corporations are persons. They take things personal. Yet, some would believe, immortal... They take forever to die."
- Mark Twain, 2012

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

I was aware

of the increase in the estate tax, but didn't even think about it in terms of agriculture.......

Once again...the big-agra/GMO giants are being helped again by government.

Makes me want to vomit

into my own mouth!

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    Who ever the owner of

    said farm is, why can't he/she sell the farm to their children well before their death? If I had a few hundred acres and most my life had already passed by, I would sell my land to my kids for $1. It is completely legal yes?

    “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

    Well here in NJ

    With something as small as a car you still can't do that. If you say you bought a car for $1 the DMV will send you a letter back saying that the market value for said car is whatever they deem it to be and then they demand that you pay them the tax on that amount or have a very good explanation as to why you only paid a dollar for said car.

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    You are correct

    you may pay $1 for it but you can bet your ass you will pay taxes based on the "market value".

    Simple Solution

    Put the assets into trusts. The trust then owns (holds in trust) the asset. In this way no property changes hands and therefore there is no so-called Death Tax. This solution is so simple I cannot understand why this issue is even an issue.

    I think this is the way to go

    Although there may be some downsides. Can you give us some more details or point us in the right direction as to where to find out how to do this?

    Also this may be another topic but should a "Land Patent" be pursued if you own Real Estate?

    Property changing hands

    A real question for you, Dale -- I don't know the answer -- doesn't the property change hands (a taxable event) when the owner PUTS it into a trust? I understand that there's no tax due once the trust has ownership of the asset, but how does the owner transfer assets into the trust with no tax consequences?

    Recommended reading: The Most Dangerous Superstition by Larken Rose

    This issue is one I struggle with

    Is the real debate over how much and at what point the tax should apply?

    Was everyone cool with after $5 million at 35%

    The fact that the government takes a big chunk of something after someone dies is outrageous to me, but my understanding is that the reasoning is so that one or two families could never end up owning the whole world.

    That's where I struggle with this.

    If this was a tax that was intended to keep the Rothschild's and JP Morgan's of the world from becoming global landlords, I have to admit that I'm ok with that. That would be an awful world to live in (almost sarcasm since it's almost our world now)

    Having farmer Joe work his lifetime to build a good sized farm and then his kids lose it all or most of it, because they can't afford the death tax, is just plain wrong.

    So is it the value and percentage that's the issue or the fact that it exists at all?

    Can anyone help me get my head around the bigger picture of the death tax?

    tks

    One day, I'm gonna' change my name to Dale Lee Paul

    I suspect it is more likely

    I suspect it is more likely to have been set up by the "Rothschild's and JP Morgan's" types.

    When you start with a law that legalizes stealing

    Don't be surprised when the most efficient and ruthless thieves end up with the loot. The Rothschilds and Morgans don't pay these taxes. Monsanto doesn't pay these taxes. They have trusts and corporations and a million other evasive measures to avoid them. It is generally the hirelings OF these huge racketeers who craft the tax laws for our wonderful (best that money can buy!) legislators to pass along to the slaves. The tax laws are designed to put their small competitors out of business, no matter what egalitarian rhetoric accompanies their passage in congress.

    Recommended reading: The Most Dangerous Superstition by Larken Rose

    And the lost farms will end up planted in GMO crops.

    There is a common bumper sticker around here - "No Farms, No Food." I like it, but just "food" is not enough - we need SAFE food and Monsanto is angling to become THE food supply.
    In another thread, someone asked about how profitable aquaponics is or can be, and part of my reply was that I don't really know if I want to make any money with it. Our current strategy is to make ourselves as poor as we can stand - we don't want to lie or cheat on taxes (due to loss of liberty, not because we believe our tax code is legal or just) but they can't tax what you do not earn. Our farm is just getting started, and we intend to make it as self sufficient as possible (zero input is the ultimate goal, understanding we will likely fall short.) Then we will calculate annual taxes and expenses and try to make just enough money to cover them, but strive for zero profit. They currently pay farmers to leave some fields lay fallow, so I see no problem with me growing food and giving it away if I don't need it. When we are sitting and planning, it is all very "matter of fact" talk, but when I sit here and type it out, it makes me want to scream. Planned poverty as a survival strategy in this nation where I am supposedly free to make whatever I want of my life...

    Love or fear? Choose again with every breath.

    Need advice on aquaponics, how do you design a system?

    There is a high value in self sufficiency, the more you can produce yourself the less you need to purchase. The potential for aquaculture and aquaponics is amazing. I have researched it and I would love to have a setup soon, but I know it needs to be done right. A change in PH, temp, ammonia levels, etc and the system crashes. My son in law, an engineer who works on automated robotic systems, said he could set up a simple inexpensive computer system with sensors so it would continuously monitor for the variables. So any change in PH, temp, ammonia, nitrites, nitrates, water pressure etc. could be instantly corrected or at least send an alarm so it could be corrected quickly. I just need a proper design plan and know what the variables are, any suggestions?

    You want to start small or go big?

    Entry level design, I recommend "barrelponics" - can be done in an apartment or garage. Check youtube for various spelling versions for more videos.
    http://www.youtube.com/watch?v=NG-bB7d1n2w

    Slightly larger, patio or small greenhouse:
    http://www.youtube.com/watch?v=WYFM7J_TpTU

    This is very similar to what we are upgrading to right now:
    http://www.youtube.com/watch?v=6ETT5YZ5zPE

    If you have some serious space, let your imagination run wild:
    http://www.youtube.com/watch?v=2BEtplkio0A&feature=related

    You may need a biofilter:
    http://www.youtube.com/watch?v=nvSgfqwa_dA

    We always run our system at about 1/2 capacity for fish, it makes it much easier to keep the water stabilized.

    Your question was - "how do you design a system?" Well... I can hardly wait for you to show me how you designed your system - post pics!

    Love or fear? Choose again with every breath.

    Thank you,

    So many of these AP systems have a Rube Goldberg appearance, pipes, pumps, bio-filters, tanks, auto siphons, timers, it can be complicated and a little confusing. I need to learn more. What I have now is two small in ground ponds (PDM lined)one with about 300 gal and another 600 gal, a small pump running through a small expanded clay pebble bio-filter. I have goldfish, frogs and a turtle in the ponds, a purple water plant that's growing like mad. Its been running about 5 years and the fish are doing fine, except for the ducks that drop in and that darn raccoon.

    This past year, rather than watering my three, 4'x8' SQ FT gardens with hose water, I ran the water from the ponds, then added fresh water to replenish the ponds. OMG, the gardens seriously exploded, in the past I just used compost, but adding the fish water more than quadrupled the plants. Now I'm hooked on aquaponics.

    I'm in Michigan so I need a edible fish species that's hardy for the climate. Any suggestions? I'm considering a green house for next year with an aquaponic system in it.

    The death tax is the most insidious of our taxes

    this tax is beyond evil

    Ron Paul commented on this

    Ron Paul commented on this very subject on a CSPAN interview recently. It seems this would have devastating effects on our ailing economy as well as a total injustice to families and businesses.

    I'm curious if families can prepare in advance by selling their land and businesses ahead of time to family members for pennies on the dollar? Perhaps families need to prepare in advance with every loophole possible. Would this also affect a spouse or only children?

    The farmers and business owners who are aware of the estate tax

    set up trusts and other means to evade the tax or marginalize it. One way is to have a life insurance policy purchased well in advance to cover the cost of the estate tax. The problem with potential hyper inflation is that businesses who are below the $1,000,000 amount now may soon meet it or excede it. If the fed keep printing we will all have million dollar estates.

    Thank You!

    I'll definitely look into the insurance policy. The other suggestion someone told me was to simply sell the land for a nominal amount (as low as a $1?) to someone else in the family. Is that doable you think?

    Estate planning is essential to preserve a farm or business

    My advice would be to contact an attorney and CPA who specialize in estate planning, to get it set up correctly. With the right planning the estate can be kept out of probate, that saves money and complications for the heirs and assures your wishes are complied with. The last thing you want to have happen is for the estate wind up in probate and then force the sale of a business or farm to pay taxes.