• zalgotext
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          1 year ago

          If necessary for the inheritor to meet their tax obligations, sure. I’m sure there’s a dozen different estate tax systems in place that tax professionals would know more about, but yes, liquidating assets would be one way for an interior to meet their tax obligations.

          • aidan@lemmy.world
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            1 year ago

            What would another way be? Say I inherited my parents company they built, entirely privately owned.

            • zalgotext
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              1 year ago

              You would be charged a tax proportional to the value of that business. How you pay it is up to you. This is how estate tax is currently done in the US at the Federal level. Again, I’m not a tax professional, so if you want to know more I’d suggest looking into it yourself.

              • aidan@lemmy.world
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                1 year ago

                That would essentially mean family businesses, at least past a certain size, would be impossible. Or more realistically, they would just obfuscate the ownership structure.

                • zalgotext
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                  1 year ago

                  Which is why estate taxes have caps such that people who own small family businesses are rarely affected.