That's not what the Death card means

post 12
written 2005-09-14 20:25:00

2010 is a good year to die. Did you all know that? I thought it was weird, possibly a misphrasing in my Federal Income Taxation book, but no. It's true.

In 2010, the estate tax (the "death tax" to Republicans, who love a good over-the-top euphemism) will be abolished. The years leading up to 2010 will show a gradual erosion of the estate tax, improving the inheritors' adjusted bases more and more each year until 2010, when there will be no estate tax at all.

And then in 2011? They put it all back the way it was before all the erosion and repealing.

That seems odd. What would impel legislators to decide, "You know, we should totally pick a year, and make that a good year to die. That'll mess with people's heads, won't it? Dude!"

I don't get it, but that's the law on the books right now. I read an article by a CPA or tax attorney asserting that set of laws would be altered or repealed before they could take effect.

So, what I learned in class today: die in 2010 if you can help it, die before 2010 otherwise, and be married when you do so. (You can increase your net worth by $1.3 million for tax deduction purposes, and your spouse can claim $3 million in forced-share inheritance assets.) Oh, and every class is grim if you look at it right.

9.14.05, 8:25 PM, EDT, Ada, Ohio

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