Estate taxes – Eshcinsel http://eshcinsel.net/ Tue, 24 May 2022 15:56:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://eshcinsel.net/wp-content/uploads/2021/10/icon-41-120x120.png Estate taxes – Eshcinsel http://eshcinsel.net/ 32 32 Are TOD CD accounts subject to inheritance tax? https://eshcinsel.net/are-tod-cd-accounts-subject-to-inheritance-tax/ Mon, 23 May 2022 18:31:46 +0000 https://eshcinsel.net/are-tod-cd-accounts-subject-to-inheritance-tax/ Certificates of deposit (CDs) are a low-risk way to save money for the short to medium term, and are a popular way for seniors to earn a modest return on their savings. As a result, CDs are often included in inheritance settlements, where they can be passed on in multiple ways. In order to avoid […]]]>

Certificates of deposit (CDs) are a low-risk way to save money for the short to medium term, and are a popular way for seniors to earn a modest return on their savings. As a result, CDs are often included in inheritance settlements, where they can be passed on in multiple ways. In order to avoid probate, many CD owners choose to name a transfer beneficiary on death (TOD) on their account, that is, someone who will automatically inherit it when the original owner dies. .

While this may help keep the CD out of probate proceedings, it does not allow you to avoid estate taxes. In this guide, we’ll explain how these taxes apply to CDs and why naming a TOD beneficiary is always a good idea.

Key points to remember

  • Designating a transfer on death (TOD) beneficiary for your CD accounts may prevent some of your assets from being probated, as your CD assets will be transferred to your named TOD beneficiary without having to go through probate.
  • Putting TOD beneficiaries on accounts does not mean that you or your heirs avoid estate taxes.
  • The value of CDs counts toward federal and state estate tax thresholds, although heirs may avoid probate.
  • The federal estate tax threshold is very high (in 2022, just over $12 million), and few states impose this tax. This means that the vast majority of estates do not have to pay inheritance tax.

Understanding Property Taxes

In order to understand when and why inheritance tax applies to TOD beneficiaries named on CD accounts, it is helpful to consider how inheritance tax works more generally.

When a person dies, the value of their estate is assessed and they may be subject to death and inheritance tax. For these to apply, however, an estate must be of a particular size, and it depends on where the person lived. Although the threat of estate and inheritance tax exists, in reality the vast majority of estates are too small to be subject to federal estate tax.

As of 2022, federal estate tax only applies if the deceased person’s assets are worth $12.06 million or more. It therefore only applies to a small number of people. Similarly, most states do not have an estate tax, which is levied on real estate, or an estate tax, which is imposed on those who receive an inheritance from an estate. That said, 12 states and the District of Columbia have estate taxes, and some of their exemption amounts are well below the federal threshold. For example, exemptions are only $1 million in Oregon and Massachusetts.

It is quite rare for an estate to be taxed. If you are one of the few Americans to leave an estate large enough for taxes to apply; however, it is important to understand how your inheritance tax will be calculated. Specifically, when it comes to TOD beneficiaries, it’s critical to understand that your estate estate and your taxable estate are two different things. A taxable estate is the value of everything owned at the time of death, whether or not it requires probate to transfer to a living beneficiary.

This means that while naming a TOD beneficiary on a CD account will keep the account out of probate, it will not help you avoid estate tax. Your CD will count towards the total value of your estate, whether or not you named a TOD beneficiary, and your heirs will be liable for this tax.

The vast majority of estates are not large enough to attract federal estate tax, and only a few states have their own estate taxes. Assets held in a CD, whether or not a TOD beneficiary is named, count towards tax thresholds.

Inherit a CD

The rules described in the previous section mean that very few heirs have to pay inheritance tax, either on their CDs or on any other assets. However, there are tax consequences associated with inheriting a CD.

Generally, interest earned by a CD before the death of the account holder is not taxable to the beneficiary, nor is the original amount that was deposited. But any interest earned after the death of the account holder would be taxable to the beneficiaries. If the amount of money in the CD is modest, the tax bill will likely be modest as well. But if you inherit a five or six figure CD, you may owe a significant amount of tax.

This rule applies whether an heir inherits a CD as a TOD beneficiary, co-owner or by estate. In other words, naming a TOD beneficiary can be a great way to simplify estate proceedings, it does not confer any tax benefits to your heirs, either for inheritance tax or income tax.

What are the inheritance tax thresholds?

As of 2022, federal estate tax only applies if the deceased person’s assets are worth $12.06 million or more – and therefore only applies to a small number of people. Twelve states and the District of Columbia have estate taxes, and some of their exemption amounts are well below the federal threshold.

Who can I designate as a TOD beneficiary?

Virtually anyone. A TOD beneficiary can be an individual, charity, business or trust. If the beneficiary is a person, it can be a parent, child, spouse, friend or anyone else you know. However, if you are married, your spouse may have special rights to your assets that take precedence over your named TOD beneficiaries.

Does naming a TOD beneficiary have tax benefits?

No. Although naming a TOD beneficiary may help your heirs avoid the probate process, it does not confer any tax benefit. It doesn’t help you avoid inheritance tax, and your heirs will still have to pay tax on CD income after you die.

The essential

Naming transfer on death (TOD) beneficiaries on your CD accounts can help some of your assets avoid probate because your CD assets will be transferred to your named TOD beneficiary without having to go through probate. However, this won’t help you (or your heirs) avoid estate taxes, because the value of your CDs counts toward federal and state estate tax thresholds, even if they don’t have to go through certification.

The federal estate tax threshold is high and few states impose this tax. In other words, the vast majority of estates do not have to pay inheritance tax.

]]>
How Much Are Center County School Districts Raising Property Taxes? https://eshcinsel.net/how-much-are-center-county-school-districts-raising-property-taxes/ Fri, 20 May 2022 19:43:55 +0000 https://eshcinsel.net/how-much-are-center-county-school-districts-raising-property-taxes/ All school districts in Center County have proposed 2022-23 budgets that raise property taxes to help cover costs. Abby Drey Center Daily Times, file All Center County public schools are raising property taxes in their proposed 2022-23 budgets, citing increases due to inflation, charter school tuition and rising transportation costs. After many schools put tax […]]]>

All school districts in Center County have proposed 2022-23 budgets that raise property taxes to help cover costs.

All school districts in Center County have proposed 2022-23 budgets that raise property taxes to help cover costs.

Center Daily Times, file

All Center County public schools are raising property taxes in their proposed 2022-23 budgets, citing increases due to inflation, charter school tuition and rising transportation costs.

After many schools put tax hikes on hold at the height of the pandemic, districts now need to raise revenue to cover rising costs.

The pandemic has impacted school budgets, increasing the number of support staff and school expenses, said Randy Brown, finance and operations manager for the State College Area School District.

“We continue to feel the impact of COVID to some degree,” Brown said in a recent interview. “Not necessarily in the supplies of masks and gloves and that sort of thing, but the different types of teaching and the expectation of what we think are high enrollments in virtual schools, which means that students who are in the virtual academy instead of coming in person every day.”

Districts are also focusing on saving money for projects or paying back promised investments that may have been set aside during the pandemic years. Part of the Bellefonte Area School District’s tax increase, for example, is to help raise funds for the ongoing elementary school project.

Charter school tuition also impacts school budgets, and higher charter enrollment can lead to tax increases, district officials said.

BASD Director of Tax Affairs Ken Bean said charter school tuition is one of the reasons the district is raising taxes. BASD has 174 students enrolled in charter schools, costing the district about $3.5 million for the 2022-23 school year. Charter school tuition represents 3.6% of SCASD’s budget, $6.5 million for the 2022-23 school year.

Districts are also raising staff salaries to address shortages across the state, said Lynn Naugle, business manager for the Penns Valley Area School District. All support staff positions for PVSD received a $2 increase in fall 2021, as part of the district’s plan to attract and retain staff. For SCASD, district pension contributions have increased by $1.9 million over the past year.

Rising gasoline prices and transportation costs have also begun to affect district budgets for next year.

“We’re seeing fuel increases, like everyone else,” Naugle said. “Some of our services now come with fuel surcharges, such as garbage disposal services.”

Since local sources make up the majority of district funding, increasing property tax rates is one way for districts to combat rising expenses.

Below is an overview of the proposed budget in each school district. The average annual tax increase is based on the median home value in each district.

Property owners may be eligible to receive school property tax relief through a “homestead or farm property exclusion”.

A homestead exclusion reduces assessed value, lowering property taxes and school district taxes. The amount of tax relief differs for each district. Applications are sent annually in December with an application deadline of March 1.

Bald Eagle Area School District

Estimated total revenue: $35,005,725

Estimated total expenses: $35,546,923

Property tax increase: 3.34%

Annual tax increase for the average homeowner: $70

And after: The Bald Eagle School Board voted to approve the draft budget at its May 12 meeting. The final budget will be voted on at the board meeting on June 16.

More information: Bald Eagle Preliminary Budget

Bellefonte Area School District

Estimated total revenue: $54,485,000

Estimated total expenses: $57,260,000

Property tax increase: 2.1%

Annual tax increase for the average homeowner: $54.33

And after: The Bellefonte school board approved the preliminary budget on May 10, but the final vote will take place at the board meeting on June 14. The Board of Directors will meet on May 24.

More information: Budget presentations and documents are available on the District BoardDoc website.

Penns Valley Area School District

Estimated total revenue: $30,902,424

Estimated total expenses: $31,476,053

Property tax increase: 4.3%

Annual tax increase for the average homeowner: $94

And after: The Penns Valley School Board approved the draft budget at its May 18 meeting. The final vote will take place at the June 22 board meeting.

More information: Penns Valley’s budget summary is available on the district’s website.

Philipsburg-Osceola Area School District

Estimated total revenue: $34.3 million

Estimated total expenses: $34.7 million

Property tax increase: 3%

Average annual tax increase for Center County residents: $45

And after: The POSD board has not yet voted on the draft budget but is expected to do so at its May 25 meeting, after which the budget will be made public.

State College Area School District

Estimated total revenue: $177,037,552

Estimated total expenses: $180,273,275

Property tax increase: 3.4%

Annual tax increase for the average homeowner: $113

And after: The State College School Board will vote on the final budget at its June 3 meeting.

More information: Budget documents are available on the district’s BoardDocs website.

Keely Doll is an education reporter and service reporter for the Center Daily Times. She previously worked for the Columbia Missourian and The Independent UK.

]]>
Notice of property taxes due – Royal Examiner https://eshcinsel.net/notice-of-property-taxes-due-royal-examiner/ Wed, 18 May 2022 16:01:31 +0000 https://eshcinsel.net/notice-of-property-taxes-due-royal-examiner/ Warren County Board of Supervisors Chair Cheryl Cullers opened the open session of Tuesday night’s regular meeting by commenting on how pleased she was to see a good turnout from those in attendance for May 17.and Meet. By the time public comment on non-agenda items near the opening of the meeting was interrupted to move […]]]>

Warren County Board of Supervisors Chair Cheryl Cullers opened the open session of Tuesday night’s regular meeting by commenting on how pleased she was to see a good turnout from those in attendance for May 17.and Meet. By the time public comment on non-agenda items near the opening of the meeting was interrupted to move to the 7:30 p.m. public hearings portion of the meeting, she may have had doubts about his greeting from at least some of that crowd.

Okay, that part of the crowd wasn’t problematic because the council recognized the county’s EMS workers for National EMS Week. Royal Examiner Photos by Roger Bianchini

As it appeared that a number of them were there to question the reasons, methods and motives of the Council regarding matters related to the transfer of responsibility for the direct management of the road of the Shenandoah Health District Farms and other maintenance projects away from the elected owners of Shenandoah Farms (POSF Board of Directors) inc. Supervisors cleared advertising for volunteers to be named to an “advisory committee” of the Farms Health District. These were 7 of the 8 speakers, then 5 of the 6 message writers read in the minutes by council clerk Emily Ciarrocchi, who strongly criticized the oversight board in this regard. The other two dealt with other issues.

But more on that in a future Royal Examiner narrative.

For now, we will focus on the action points planned for the meeting.

Public hearings

The bulk of the evening’s program of action consisted of seven public hearings. Two, including an amendment to the ordinance to allow conditional use authorization (CUP) of a “day care center (crèche)” for more than six children on land zoned agricultural, linked to the initiative of the Baptist Church of Rivermont to create such a daycare. Center using its existing Fellowship Hall building across Catlett Mountain Road from the church. Vacant land across Figgins Road would also be used as a ‘non-commercial’ playground and recreation area for the daycare, the staff diary summary says.

A need to adapt the use to serve working families in the Fork district was cited by the church in its permit application. The County Planning Commission unanimously recommended approval of the plan and use of the church. The council followed suit with 5 votes to 0 for amending the ordinance and granting conditional use permission for the church daycare.

New planning director Matt Wendling, right, and zoning administrator Chase Lenz explained various CUP demands to council during seven public hearings.

Four CUP applications for short-term tourist rentals were unanimously approved without public hearing comment or expressed opposition from neighbors. These requests for short-term rental CUPs, in order of presentation, were sent by:

Soloman A. Stavis at 9 Oak Hill Drive in the Oak Hill Subdivision in the South River District;

Jared Smith at 31 Henry Way in the Blue Mountain Subdivision in the District of Shenandoah;

James B. & Jeonghe C. Lal at 280 Overbrook Lane at Shenandoah Shores in the District of Shenandoah. During the presentation, it was noted that the Lals were Christian missionaries whose work in Malawi, Africa, took them out of the country for long periods of time, during which they wanted to rent the property on a short-term basis;

And CUP’s latest short-term rental request came from Rocky Quach for the property at 524 Freezeland Road in the Cherry Ridge Subdivision in the Happy Creek District. During the discussion of this short term rental application, it was noted that the applicant currently resides in San Jose, CA and would hire a “local property management company” to manage the operation and maintenance of the property. The rental would target families with amenities for infants, including high chairs and a portable travel cot, made available as part of the rentals.

A final CUP request was from Richard W. Durkee for a private non-commercial use campsite on two vacant lots in the Riverview section of the Shenandoah Farms subdivision. The staff diary summary explained that the plaintiff’s family had owned the lots in a special flood hazard area since the 1960s. The original home on the property was “significantly damaged” by the hurricane Agnès in June 1972 and therefore suppressed. Durkee’s CUP application would facilitate the construction of a single accessory structure of up to 216 square feet for the storage of recreational and property maintenance equipment. Staff observed that the applicant[traduction]“plans to have an RV and use a port-o-john” while camping on the property seasonally.

Like the six public hearing requests that preceded it, Durkee’s was approved unanimously 5-0 by the board.

Sale of Cardinals beer and acquisition of property

If the public hearings went without much, if there was a discussion of the board of directors or an expressed opposition, this is not the case for two other points of the agenda. The first was an agenda item of consent drawn for discussion on the Valley League Baseball Front Royal Cardinals management’s request to be allowed to sell beer at home games of the Cardinal at county-owned Bing Crosby Stadium. This led to a largely conjectural exploration of the alcohol content of various beers and the placing of a cap on the strength of beer to be sold at games. Walt Mabe suggested a cap of 3.2% while admitting no background knowledge of the relative strengths of beers.

During a May 10 business session presentation to supervisors on the team plan, Cardinals vice president Alex Bigles noted that no higher-alcohol craft beer would be sold and that extensive security and sales measures would be put in place to prevent excesses and impaired driving. of the stadium after the matches. These measures included training for sales staff on the signs of intoxication, a limit of two beers per customer sale, breathalyzers available and free bus rides from the stadium, as well as no beer sales after the start of the seventh inning of the nine-inning. MLB development league games.

“I thought we covered that in the business session a week ago,” FR Cardinals Board chair Donna Settle, seated, and Cards vice-chairman Alex Bigles on the podium may have thought afterward. almost half an hour of grilling on the strengths of beer. and sales momentum by the board on what was originally submitted by staff as a consent agenda item after extensive discussion a week earlier.

As this discussion continued, Bigles noted that the county had to approve the team’s request to sell beer to allow its state Alcohol Beverage Control Board (ABC) license to be applied for. A turnaround in ABC licensing of up to a month was estimated by Cards representatives, who said they were pointing to a late-June start of new franchise sales. With the council stuck on alcohol content guarantees, Acting County Attorney Jason Ham did a little research on his phone and told the council that common American brand beers were rated at 5% or less.

After half an hour of discussion and suggested adjustments to the motion presented on the Consent Agenda, council counsel Ham gave a proxy reading of his rewritten motion in the council brief. On Vicky Cook’s motion to approve the motion as read, seconded by Jay Butler, the board approved the Cardinals’ request to sell beer with an alcohol content of “5% or less” by a vote of 5-0 .

Then it was the last item on the evening’s agenda, the authorization for the staff to move forward with the purchase of an East 2n/a Residential street lot priced at $212,000 that would complete county ownership of the block on which the Warren County Government Center (WCGC) sits. This led Delores Oates into a brief treatise on small government to justify a vote against authorizing the purchase. “We own too much property,” Oates explained, objecting to the purchase based on political ideology aimed at reducing government functions and seemingly future needs for property and space.

Delores Oates cited political theory favoring “smaller” government when prefacing her vote against buying one last piece of property on the WCGC bloc.

However, Council Chairman Cullers pointed out that a state-mandated staff position was currently occupied in storage space at WCGC, indicating an existing need for more space in the County Government Center complex, not less. Vicky Cook’s motion to authorize the purchase passed by a vote of 4 to 1, with Oates dissenting.

And after two hours, the public meeting was adjourned at 9 p.m. See all of the board business, including the latest chapter in the evolving story about the future of Shenandoah Farms Health District project management and decision-making boards, in the county video.


]]>
Warrenton council votes to equalize property taxes; mayor, top executives worry https://eshcinsel.net/warrenton-council-votes-to-equalize-property-taxes-mayor-top-executives-worry/ Sat, 14 May 2022 17:38:46 +0000 https://eshcinsel.net/warrenton-council-votes-to-equalize-property-taxes-mayor-top-executives-worry/ Left to right, Warrenton Councilman William Semple (Ward 2), Mayor Carter Nevill, Councilor Brett Hamby (Ward 3) and Vice Mayor James Hartman (Ward 4) vote on a motion to equalize the rate the city’s property tax office at a May 10 meeting. Warrenton City Council voted unanimously this week to raise the city’s property tax […]]]>

Left to right, Warrenton Councilman William Semple (Ward 2), Mayor Carter Nevill, Councilor Brett Hamby (Ward 3) and Vice Mayor James Hartman (Ward 4) vote on a motion to equalize the rate the city’s property tax office at a May 10 meeting.

Warrenton City Council voted unanimously this week to raise the city’s property tax rate from 5 cents per $100 of assessed value to 4 cents in a bid to maintain the level of taxation for homeowners locals, and the council seems set to reject further tax increases in the city. Manager Brandie Schaffer’s proposed budget for fiscal year 2023.

But Mayor Carter Nevill and senior officials argue that failure to raise taxes could put the city in dire financial straits and impact the quality of city services.

During the city council’s morning business session on Tuesday, several council members reported that they were very concerned about Schaffer’s $32.4 million spending plan, which would increase the city’s budget by 5,000,000. $9 million, a 22% increase from fiscal year 2022. The main argument of several council members, including Ward 2 council member William Semple, was that the tax increase would negatively affect many city residents suffering from things like rising inflation and rising gas prices.

“We’re growing faster than we should,” Semple said during Tuesday’s business session.

Local taxes, including the general property tax, account for almost a third, or approximately $11.3 million, of the City’s operating budget, which funds services such as garbage collection, street paving, police services and snow removal, among others. And not increasing taxes, according to the town hall, can directly affect the quality of these services.

Schaffer had proposed in his budget that the city maintain its current rate of $0.05 per $100 of assessed value. Since property values ​​in town have increased by 22.05%, the average resident’s tax bill would rise from $171.87 to $209.68, or $37.81.

The council was required by Virginia law to pass the property tax rate by May 15 and therefore opted for equalization – meaning council members lowered the property tax rate to whatever keeps taxes steady for average homeowners — so residents don’t have to pay the extra $37.81.

According to the city manager’s office, council lowering the property tax rate from 5 cents per $100 of assessed value to 4 cents would currently eliminate $189,916 in revenue from the city’s operating budget for fiscal year 2023 over the based on the Commissioner’s total assessment of real estate value income.

Schaffer told FauquierNow that the $189,916 in additional revenue would have helped offset rising costs to the city due to inflation, as well as the potential food tax loss that the Virginia legislature is currently considering. to reduce. Eliminating the grocery tax would cost the city an additional $265,475 in tax revenue.

“The proposed rate partially offset this anticipated loss,” Schaffer said. “The board may adjust to compensate in other areas, but staff view this as an anticipated recurring revenue loss that will need to be compensated for annually, not just FY23…Once we cover the fiscal year 23, it’s not a new loss every year, but looking at a five-year perspective, it’s a revenue stream that probably won’t exist before, so planning is necessary this loss.

The city manager’s office noted that the property tax rate reduction not only affects the city’s fiscal year 2023 budget, but also reduces Warrenton’s current operating budget by approximately $95,000.

Schaffer said she doesn’t know how the reduction in the property tax rate will affect this year’s budget or next year’s in terms of services and compensation. It will be up to Council, which has a work session scheduled for May 18 at 7 p.m. to discuss the budget.

Semple told FauquierNow that he doesn’t think equalizing the property tax rate means there will be a cut in funding for services. He noted that this could have an impact on the general fund, but added that the council must “ensure that the budget corresponds to the needs of the citizens”.

“I just assume that within the $35 million budget, we’ll be able to find money somewhere,” he said. “There are always places where you can cut back…if you took all the departments and split them, there might be some [money] here and some [money] the.”

In addition to combating rising cost inflation and cutting state subsidies, Schaffer’s proposed tax increase in his budget would allow the city to fund new capital improvement projects, d ‘hire more full-time positions and increase current employees.

Among the most urgently needed capital improvements are water and sewer projects, which would be funded by an increase in the city’s water and sewer rates.

If Schaffer’s proposed budget is adopted, customers’ water and sewer bills would increase slightly. For customers with minimal water usage (2,000 gallons per month), their bills would increase by $1.39 per month. The median water usage in Warrenton is 3,000 gallons per month, which would increase customer bills by $3.08 per month, according to the city manager’s office.

In total, there are 42 proposed items that the board and staff are funding that have been postponed in recent years due to the pandemic.

Schaffer noted in his proposal that the city experienced a 13% turnover rate in 2021, with the hardest hit departments being police (23%), utilities (17%) and public works (36%). .

The main reasons for leaving were pay, retirement and better job opportunities elsewhere.

To address this issue, Schaffer proposed increasing employee salaries by 5-7%, with 5% guaranteed “to meet cost-of-living increases for all employees” and an additional 2% depending on the ” work performance” of employees.

Schaffer offered to fund five new employee positions, including a new position for police sergeant and junior utility engineer, as well as raising the position of city clerk from part-time to full-time.

Mayor Carter Nevill told FauquierNow that he was disappointed that Council decided to lower the property tax rate to 4 cents for several reasons. First, he said it makes the city more dependent on other forms of revenue, including the meal tax (currently the city’s largest source of revenue, totaling 21%), which makes the city more vulnerable. to recession.

“When you look at revenue streams, there should be some balance…if you’re relying on the corporate sector to bear the burden of your revenue. In the event of an economic downturn, you make yourself vulnerable,” he said.

Second, Nevill noted that failure to increase tax revenue undermines the city’s ability to provide quality services to residents.

“The [tax increases] are portrayed as exorbitant … but I pay $190 in property taxes for my house, every year,” Nevill said. “From the city, I have garbage picked up twice a week…for every dollar, I probably get two and a half dollars and services in return. It’s wonderful and we should celebrate that.”

Nevill said he was skeptical of council members who voted to lower the property tax rate and advocate for possibly preventing further tax increases, but who continue to delay salary increases and increased funding for infrastructure projects.

“…that money has to come from somewhere,” Nevill said. “The challenge is that you have board members who have expectations and want shiny new things…but how do we increase our recreation parks and recreation opportunities…all of that, when you contract the budget ?”

Nevill, who is only allowed to vote in a tie among board members, said he would have voted against the rate cut if given the chance.

During Tuesday’s morning business session, city council members said they were also considering preventing other tax increases proposed by Schaffer, including raising the meal tax from 4 to 6. % and tax on cigarettes from $0.20 to $0.40 per pack. Together, the two tax increases would generate nearly half a million dollars in revenue for the city.

Alec Burnett, president of the Fauquier Chamber of Commerce, said Tuesday that he wants the Council to consider reviewing the proposed meal tax increase because of the burden it could place on business owners.

However, by equalizing the property tax rate, Nevill said, the Council may inadvertently place a greater burden on business owners, including restaurants, if they decide to raise the tax on meals.

“I would still be in favor of a 6% meal tax…I think that will be an interesting question for council to answer as…they have shown a willingness to ease the tax burden on residents,” Neville said. “Are they going to do the same for businesses?”

]]>
Virginia Beach, Don’t Raise Property Taxes During High Inflation – The Virginian-Pilot https://eshcinsel.net/virginia-beach-dont-raise-property-taxes-during-high-inflation-the-virginian-pilot/ Wed, 04 May 2022 22:02:46 +0000 https://eshcinsel.net/virginia-beach-dont-raise-property-taxes-during-high-inflation-the-virginian-pilot/ More revenue is going to the resort, and the budget proposed by the Virginia Beach City Council increases property tax revenue by 12%. Meal tax revenue increases by 43%, which we pay when we buy a Happy Meal at McDonald’s or a pre-cooked chicken at Food Lion. Entertainment tax revenue increases by 61%, something we […]]]>

More revenue is going to the resort, and the budget proposed by the Virginia Beach City Council increases property tax revenue by 12%.

Meal tax revenue increases by 43%, which we pay when we buy a Happy Meal at McDonald’s or a pre-cooked chicken at Food Lion. Entertainment tax revenue increases by 61%, something we pay to take our children to the movies, skating, bowling, mini-golf, and hotel tax revenue, the only tourism-only tax, increased by 46%.

These taxes come from all over town, not just the resort area. We should remove the Tourism Investment Scheme Fund so that we all benefit from tourism and not just the waterfront. It is not fair to subsidize business districts when we have districts that pay higher real estate rates for dredging and sand replenishment, or places that are free during tourist season when they might charge entry, or nonprofits when they should be scrambling to solicit donations volunteers from the patrons, do not ask the government to confiscate it from the residents.

Virginians continue to feel financial pressure that prevents them from paying for basic goods and services necessary for daily living. Inflation is at its highest level in 40 years and no relief is in sight; gas costs $4.20 and prices are expected to continue to rise throughout the year.

The average household could incur $5,200 more this year due to inflation. Council should not increase property taxes on top of this burden on ratepayers.

Dianna Howard, President of the Virginia Beach Tea Party, Virginia Beach

What a nightmare for parents. Our schools are turning into a place where the last thing you learn is the three Rs. Instead, it all seems to be about gender fluidity, racism and green initiatives. Of course, none of this helps you find a job or become a productive person. Instead, they help make you a victim, a person in need of support, or an advocate.

I support all parents who are mobilizing to take more control over the way their children are educated. Not surprisingly, there is a rush to home schooling and private schools. Due to these changes, some school districts across the country have had to lay off teachers. Unfortunately, in some cases, the worst place to go to school is in a public school. Maybe if we focused on the basics and did a good job and let parents guide their children through life, we could get better results.

I would rather spend taxpayer dollars helping parents be better parents than turn our schools into social science testing platforms for the last marginalized group. At this rate, we will soon all be victims. I feel this one every time I go to the Department of Motor Vehicles office.

David Murphy, Virginia Beach

Re “Virginia House Democrats Vote to Remove Del. Filler-Corn as Caucus Leader” (April 27). The subtitle of the print version of this article reads: “Scott of Portsmouth leading push to remove Filler-Corn as Minority Leader.” According to the article, Del. Don Scott of Portsmouth led the fight to oust Del. Eileen Filler-Corn, and now he wants his job.

In addition, he wants the caucus leaders to be replaced so that he can put his own in power. Scott doesn’t seem to understand much about politics. First, if he wants to improve his resume, he should run for and win a seat in the Virginia Senate, or better yet, he could run for Congress in his district.

Second, the way to win elections is to work with other Democrats, not to sow hatred and discontent within the ranks. November was a tough election for Democrats in Virginia, and the 2022 election will be tough as well. What a stupid time to leave the minority caucus leaderless until the next meeting of the House of Delegates in Richmond. Fuller-Corn is an articulate, smart, and compassionate leader whose stepping down hurts Democrats and helps Republicans.

Sandra H. Harris, Virginia Beach

Regarding “Nice work” (Your Views, April 29): I would like to give another opinion on Larry Hollowell’s letter praising President Joe Biden’s withdrawal from Afghanistan.

I know of no other leader in the history of the war who has ever publicly announced the date for the withdrawal of troops from a war. Biden thus allowed the Afghans to take control of the city; and billions of dollars in equipment and supplies to leave behind. Thirteen soldiers were killed during the withdrawal under his watch.

A much better approach would have been on his first day in office to secretly do the following in this order. First, airlift all the equipment, cannons, Humvees, tanks and helicopters. Then take out the civilians and the Afghans who helped us, and all their families and children. They were so scared that they were ready to hang on to our planes as they took off.

Tom Somma, Virginia Beach

]]>
Lacson vows to collect unpaid inheritance tax if elected │ GMA News Online https://eshcinsel.net/lacson-vows-to-collect-unpaid-inheritance-tax-if-elected-%e2%94%82-gma-news-online/ Wed, 27 Apr 2022 14:09:48 +0000 https://eshcinsel.net/lacson-vows-to-collect-unpaid-inheritance-tax-if-elected-%e2%94%82-gma-news-online/ ORMOC CITY, Leyte — Presidential candidate and senator Panfilo Lacson pledged on Wednesday to demand payment of unpaid inheritance tax if elected at Eleksyon 2022. The legislator made the promise when an attendee at their town hall meeting in Ormoc City lamented that ordinary Filipinos are forced to pay their taxes while the wealthy are […]]]>

ORMOC CITY, Leyte — Presidential candidate and senator Panfilo Lacson pledged on Wednesday to demand payment of unpaid inheritance tax if elected at Eleksyon 2022.

The legislator made the promise when an attendee at their town hall meeting in Ormoc City lamented that ordinary Filipinos are forced to pay their taxes while the wealthy are not asked to pay their dues.

“Pag kami ang naupo sigurado masisingil ‘yan, 203 billion pesos, the most important niyan– social services. Siguradong masisingil,” Lacson said in response to the attendee’s concern at the town hall meeting.

(If we win the election, you can rest assured it will be collected.)

“Pag mahirap madaling habulin. Pag mayaman mahirap habulin,” he added.

Lacson’s running mate, Senate President Vicente Sotto III hoped all voters were concerned about the issue.

“Sana lahat ng botante ganoon ang pag-uutak,” Sotto said.

(I hope all voters think like you.)

The attendee at their town hall meeting did not name anyone in particular when he raised the issue with lawmakers, but it can be recalled that presidential candidate and Manila mayor’s camp, Isko Moreno, raised the issue of unpaid property taxes by the Marcos family.

Lacson is one of the presidential candidates who has expressed concern over unpaid property taxes by the Marcoses, which reportedly reached around 203 billion pesos.

He said earlier that unpaid dues by the family of late dictator Ferdinand E. Marcos Sr. could fund government services such as the National Broadband Program – the Department of Information and Communications Technology project that aims to improve the internet connection in the country. .

He also worried that the Bureau of Internal Revenue would not collect property taxes if presidential candidate Ferdinand “Bongbong” Marcos Jr. won the presidency at Eleksyon 2022.

Lacson added that the former first family’s estate tax debt could reach $1 trillion if left uncollected.

The BIR said earlier that it sent a written request to the Marcos regarding their tax obligations on December 2, 2021.

The Treasury also said the IRS continues to demand that the Marcoses settle their estate tax debt.

However, the BIR denied GMA News Online’s freedom of information request to release a copy of the said letter of formal notice.

An entry from the SC judgment showed that the multi-billion property tax assessment became final and binding in 1999.

Bongbong’s sister, Senator Imee Marcos, earlier questioned the timing of the inheritance tax issue, calling it dirty politics in the country.

Marcos Jr.s spokesman Victor Rodriguez previously claimed that the President’s Commission on Good Governance had coordinated with the BIR regarding the Marcos family’s unpaid debt.

Rodriguez said the property subject to the tax case is still in dispute.

But this was pushed back by the PCGG, saying that while it is true that there was a “verbal understanding” between the PCGG and the Bureau of Internal Revenue in 2003, it may not be accurate to say that the agreement was to “precisely determine the just and equitable tax base to be used in calculating inheritance taxes, if any.”—LDF, GMA News

]]>
Isko reveals it’s his idea to raise Marcoses’ unpaid property taxes https://eshcinsel.net/isko-reveals-its-his-idea-to-raise-marcoses-unpaid-property-taxes/ Wed, 27 Apr 2022 07:00:00 +0000 https://eshcinsel.net/isko-reveals-its-his-idea-to-raise-marcoses-unpaid-property-taxes/ Metro Manila (CNN Philippines, April 27) – Aksyon Demokratiko presidential candidate Isko Moreno has revealed that it was his idea to raise the Marcos family’s unsettled property taxes in public. “I personally brought it up, not my band,” Moreno clarified in an interview with CNN Philippines main anchor and correspondent Pinky Webb. Last March, the […]]]>

Metro Manila (CNN Philippines, April 27) – Aksyon Demokratiko presidential candidate Isko Moreno has revealed that it was his idea to raise the Marcos family’s unsettled property taxes in public.

“I personally brought it up, not my band,” Moreno clarified in an interview with CNN Philippines main anchor and correspondent Pinky Webb.

Last March, the political party led by Moreno called on the Marcos to pay their tax debts, in line with a 1997 Supreme Court ruling.

The Bureau of Internal Revenue has confirmed that it is asking the Marcos family to settle their inheritance tax debt, which Moreno’s camp claimed to have skyrocketed from ₱23 billion in 1997 to over ₱203 billion.

The incumbent mayor of Manila reiterated his party’s position that the Marcos should pay the property taxes in question as an obligation to Filipinos.

“It’s not about anti-Marcos. This is a fact. How can you take the lead, how can you say I will bring unity and you create disunity by not fulfilling your simple obligation,” Moreno stressed.

Partido Federal ng Pilipinas Advocate General Atty. George Briones told CNN Philippines’ The Source on March 30 that their party – where former senator Ferdinand “Bongbong” Marcos Jr. is running for president – agreed that the Supreme Court’s decision on the tax on the Marcos family estates worth ₱23 billion is final and enforceable.

Briones, however, pointed out that surtaxes for unsettled debt in recent years could still be reconciled and that the 203 billion in estate tax debts cannot yet be considered final. .

Moreno added that officials must set a good example when it comes to paying taxes.

“Paano ngayon magbabayad ng buwis ang tao, huh gobyerno’s lifeblood is buwis, if I don’t know if mismo pangulo hindi ka nagbabayad ng buwis?” Moreno joked.

[Translation: How will the citizens pay taxes, taxes being the government’s lifeblood, if the president himself is not paying taxes?]

]]>
Pay your property taxes or you could lose your home. https://eshcinsel.net/pay-your-property-taxes-or-you-could-lose-your-home/ Sat, 23 Apr 2022 10:00:00 +0000 https://eshcinsel.net/pay-your-property-taxes-or-you-could-lose-your-home/ Homeowners must pay their property taxes or risk losing their homes, writes real estate contributor Lew Sichelman. Above: View of single-family homes on Palm Island on Friday, January 07, 2022. Pedro Portal pportal@miamiherald.com Deborah Foss is a 67-year-old grandmother in New Bedford, Massachusetts, who survives on a small fixed income from Social Security. She suffers […]]]>

Homeowners must pay their property taxes or risk losing their homes, writes real estate contributor Lew Sichelman.  Above: View of single-family homes on Palm Island on Friday, January 07, 2022.

Homeowners must pay their property taxes or risk losing their homes, writes real estate contributor Lew Sichelman. Above: View of single-family homes on Palm Island on Friday, January 07, 2022.

pportal@miamiherald.com

Deborah Foss is a 67-year-old grandmother in New Bedford, Massachusetts, who survives on a small fixed income from Social Security. She suffers from several health issues, including chronic lymphocytic leukemia, COPD, and neuropathy.

She used to own a house but now lives in her car.

She no longer has a roof over her head, largely because a tax lien investor took the equity she had in her home. But with the help of a nonprofit legal group, she fights back.

Foss has sued Massachusetts, challenging a law that allows private investors to forfeit all owners of equity in their homes — beyond what they owe in back taxes and interest on the unpaid balance.

Pacific Legal Foundation is the nonprofit organization representing Foss, as well as owners in other states who have suffered the same fate. Between 2014 and 2020, according to PLF, Massachusetts allowed to collect some $37 million more than homeowners owed in property taxes. In Foss’ case, she was delinquent with about $30,000 in back taxes, but the private investor who bought her tax lien was seized, taking a home valued at $241,600.

This is what makes investing in tax liens so profitable. While PLF doesn’t have an exact tally, “it’s pretty safe to say” that investors have raised “hundreds of millions” nationwide, lead attorney Christina Martin told me. She called the practice “despicable.”

While it is perfectly legal to collect tax liens, PLF argues that collecting more than is owed amounts to “equity theft.” Martin says, “We believe this is not only unconstitutional, but excessive punishment. And the Sacramento-based legal group has none of it.

PLF, which defends people against government excesses, says 11 states — Alabama, Arizona, Connecticut, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New Jersey, New York and Oregon — allow these kinds of things, which can affect commercial and residential properties. owners as well. A handful of other states have loopholes that allow the practice.

But a few states saw the craze of legalized tax lien theft and changed their rules. Last month, Wisconsin changed its law to guarantee the payment of property taxes, while providing that former owners receive whatever remains from the sale of their property. North Dakota and Montana did the same.

In Michigan, meanwhile, the state Supreme Court ruled that the old liens law violated the state’s constitution, ruling that people were entitled to any excess capital in their homes after the settlement. tax arrears. In the case that prompted the decision, Oakland County auctioned off Uri Rafaeli’s home for $24,500 because he underpaid his property tax by $8.41. The county took all the proceeds.

Nonetheless, PLF is now working with eight landlords in their lawsuit against the same Michigan County High Court. They are seeking to recover hundreds of thousands of dollars in equity lost when the county treasurer took their homes in payment of tax debts totaling only a fraction of their value.

According to PLF, the town of Southfield, Mich. (where Rafaeli lived) took advantage of a loophole in state law that allows towns to buy homes foreclosed on the county for the cost of tax debt — without paying the difference to the previous owners. While the scheme is a boon for some well-connected businesses in the region, it perpetuates the predatory seizure of home equity, attorney Martin says.

“When the government takes private property, it must pay just compensation, regardless of how it acquires the property,” she says. “The government has compensated homeowners with debt forgiveness representing only a fraction of the houses the government has taken. It is unconstitutional and unfair. »

In New Jersey, the group is helping an East Orange owner who is challenging a state tax scheme that allowed the city to take her commercial property because she paid her taxes late. The property was worth about $80,000 more than she owed.

Lynette Johnson bought the property in 2014 but claims she never received her tax bill for that year. Unbeknownst to him, the city bought a lien on his property, seized and sold the property to private investors for $101,000 in 2018. The city kept every penny of the sale, leaving Johnson with nothing.

“While the government may take property to pay taxes, it is not entitled to anything more than it is owed,” says David Deerson, the PLF lawyer representing Johnson. “When the government takes more than someone owes, it’s theft, and it’s wrong.”

Even in places where owners are allowed to keep what’s left, state and local jurisdictions can sell tax liens to investors, usually for pennies on the dollar. Not only can these investors force the sale of the property, but they can often charge whatever interest rate they want until the lien is finally satisfied.

Still, the news isn’t all bad, Martin says, citing Florida as an example. The Sunshine State forces investors to compete on the interest rates they charge. The winning bidder is the one with the lowest rate, which means delinquent homeowners will owe less interest. Investors can still foreclose to satisfy liens in the state, but what remains must be returned to the previous owner.

There are several lessons here, #1 being: “Pay your taxes.” States aren’t the only entities that can take your home in lieu of payment: private investors can too. Just like Uncle Sam, if you don’t pay your income taxes.

Lew Sichelman has been covering real estate for over 50 years. He is a regular contributor to numerous shelter magazines and housing and housing finance industry publications. Readers can contact him at lsichelman@aol.com.

Kendall Hamersly is a longtime Miami Herald editor with more than two decades of experience writing about restaurants. He reviewed hundreds of restaurants in Miami-Dade County, from best to worst.

]]>
How the Rich Use Loans to Pay Estate Taxes Without Selling Their Inheritance https://eshcinsel.net/how-the-rich-use-loans-to-pay-estate-taxes-without-selling-their-inheritance/ Wed, 20 Apr 2022 14:35:51 +0000 https://eshcinsel.net/how-the-rich-use-loans-to-pay-estate-taxes-without-selling-their-inheritance/ Cash-poor but asset-rich families can use loans to pay property taxes rather than selling inherited assets. For those with illiquid estates, they can even deduct interest and save millions on estate tax. Four lawyers tell Insider how loans can help families preserve wealth and pay Uncle Sam less. Nothing is certain except death and taxes. […]]]>
  • Cash-poor but asset-rich families can use loans to pay property taxes rather than selling inherited assets.
  • For those with illiquid estates, they can even deduct interest and save millions on estate tax.
  • Four lawyers tell Insider how loans can help families preserve wealth and pay Uncle Sam less.

Nothing is certain except death and taxes. But for wealthy Americans, there are ways to change how much you pay in estate tax and when — if you have a savvy financial advisor.

Currently, a 40% federal estate tax applies to estate values ​​exceeding $12.06 million for singles and $24.1 million for married couples. When a person dies, their heirs have nine months to file a federal tax return if their inheritance meets these minimums.

Some of the wealthiest are asset-rich but cash-poor, with their wealth tied up in illiquid assets such as real estate or private businesses. They can rush to sell those assets to meet the nine-month deadline, or take out a loan, whether from a bank or a trust, to pay Uncle Sam.

“Obviously you have to pay inheritance tax, but in the meantime you don’t have to sell potentially income-generating assets at full price, and you can use the income from those assets to repay the interest on the loan” , explained Jere Doyle, senior vice president and estate planning strategist at BNY Mellon Wealth Management.

Additionally, if illiquid assets are at least 35% of the value of the estate, families can defer estate tax for up to 14 years, paying in installments with interest and effectively taking out a government loan. .

Insider spoke to four lawyers to find out how the wealthy can use loans to keep family businesses and other illiquid assets and even save millions on property taxes.

Loans are great for saving assets that are likely to appreciate, but there are a lot of hurdles to jump through

Most banks are reluctant to provide loans to estates. “Nobody wants to line up with estate creditors,” said Jose Reynoso, senior managing director of Clarfeld Citizens Private Wealth.

But taking out a loan from a related party is often in the best interests of the family. If the loan is made by a related party, such as a family limited partnership or a trust funded by the deceased’s life insurance, the estate essentially pays off the loan.

“It’s a win-win-win,” Doyle said.

For another win, estates can take out a Graegin loan to pay estate taxes and subtract interest up front from their tax burden. The technique is named after a 1988 tax court that ruled that interest payable on a loan to pay estate tax was deductible up front. Graegin loans are only used for large estates, so the interest savings are considerable.

Here’s how a Graegin loan might work in practice, according to Doyle:

The heirs of a $10 million estate could be liable for $4 million in federal estate taxes. If they use a Graegin loan with $1 million in interest, the full amount can be deducted upfront on the tax return. The taxable estate is $1 million lower, which means the family will save $400,000 in estate taxes at the 40% tax rate.

The family is still responsible for the interest on the loan, and the net cost after estate tax savings will be $600,000, but these installments are paid over the term of the loan. In the meantime, the family can hold on to appreciating assets and use their cash to repay the loan.

However, Graegin loans come with a lot of conditions. It must be shown that the debt is bona fide – that there is a genuine expectation of repayment and an intention to enforce collection of the debts. The estate must also show that the loan is necessary to pay taxes and administrative costs in order to avoid a forced sale.

Graegin loans are rare and subject to scrutiny by the IRS

Graegin loans are rare and usually a last resort, according to Eric Mann, partner at Neal Gerber Eisenberg. For example, loans may become necessary if the client has worked with an “aggressive” investment manager who has over-allocated highly illiquid assets like private equity.

“Graegin loans come when you have a situation where someone died, someone who didn’t do enough planning and surrounded themselves with inappropriate professionals, and now they have a


liquidity

problem,” said Mann, who typically works for clients worth at least $100 million.

Graegin loans are prime targets for auditors, lawyers warn, which is part of why they avoid them. The IRS is taking some families to court.

For example, the estate of John F. Koons, III, a Pepsi distributor, claimed a $71.4 million deduction on a $10.75 million loan from an LLC controlled by the heirs. After a years-long legal battle decided in 2017, the court ruled the loan was not necessary because the heirs could have used LLC funds to pay taxes. After interest, the estate owed an additional $42.78 million in estate tax to the IRS.

Loans to repay inheritance taxes could become more popular after the halving of the inheritance tax exemption in 2026

Thanks to the tax law passed in 2017 by Republicans that doubled the asset threshold for federal gift and estate tax, very few Americans have to worry about estate taxes. According to the latest available data from the IRS, only 3,441 estate tax returns were filed in 2020 and only 1,275 were taxable.

With appraisal discounts, a married couple could potentially pass on $36 million in assets without paying federal estate tax, according to Robert Strauss, partner at Weinstock Manion.

“It’s a rich person’s playground problem,” Strauss told Insider.

But the upper tax threshold is set to expire in 2026 at $5 million, adjusted for inflation from 2018. More households will owe property taxes, and loans to pay them could become more popular.

“Perhaps smaller businesses will be affected, less sophisticated business owners who haven’t sought as much outside planning advice and hadn’t had a chance to build up cash outside of what the business generates,” Reynoso said.

But it is difficult to predict whether the sunset will actually occur. Strauss believes that by 2026, the presidency and Congress will be controlled by the Republican Party, which would be inclined to extend the exemption.

]]>
Remembrances of paying income, property taxes https://eshcinsel.net/remembrances-of-paying-income-property-taxes/ Tue, 19 Apr 2022 16:00:00 +0000 https://eshcinsel.net/remembrances-of-paying-income-property-taxes/ Beating last Monday’s deadline to file tax returns reminded me of a recent decision by Comelec. “Failure to file tax returns is not inherently wrongful in the absence of a law punishing it.” In crafting this, commissioners Aimee Ferolino and Marlon Casquejo were referring to 1982, 1983, 1984, and 1985. Bongbong Marcos Jr. had been […]]]>

Beating last Monday’s deadline to file tax returns reminded me of a recent decision by Comelec. “Failure to file tax returns is not inherently wrongful in the absence of a law punishing it.” In crafting this, commissioners Aimee Ferolino and Marlon Casquejo were referring to 1982, 1983, 1984, and 1985. Bongbong Marcos Jr. had been found guilty of non-filing of RTI as vice governor and then governor of Ilocos during these four years. Notwithstanding disqualifications under election and tax laws, they deemed Marcos Jr. eligible to run for president.

I would have liked to have had the assurance of Ferolino and Casquejo not to have a penalty in the 80s. Every year, then in March, the media controlled by Ferdinand Marcos Sr. issued warnings of various penalties for illegally missing the half-month deadline. No one dared break martial law for fear of being imprisoned without charge, tortured and stripped of their property.

I was employed from 1981 to 1983 in the newspaper of Marcos’ brother-in-law, Ambassador Kokoy Romualdez. For three years, my W-2 compensation form showed that income tax was being over withheld every payday. All of us, employees, have filed RTIs. Despite my tax overpayments, the BIR never granted me a refund or credit for the following year.

It was like medieval times, when the king owned everything and heavily taxed the serfs on pain of flogging, being thrown into the dungeons and seizing the farms. Yet the lavishly living royal family was tax exempt.

Besides income tax, also deducted from monthly salaries, there was the SSS, run by a friend of Marcos; Medicare, led by Marcos’ brother, Dr. Pacifico Marcos; and Pag-IBIG, led by Minister of Human Settlements Imelda Romualdez Marcos.

A footnote to this job was that several employees and I were fired three days before Christmas 1983. In breaking up the new union, management fired the officers and five like me who were falsely accused of advising them. My wife was pregnant. Ninoy Aquino had been murdered and the economy was collapsing due to excessive government borrowing and marital plunder. With inflation the following year, Filipinos suffered spikes in the prices of food, medicine, and fuel. Baby supplements for my newborn have disappeared from the grocery store shelves.

Most Filipinos who survived this trying time have forgiven those who caused it and who benefited from it. Still the basis for clearing Marcos Jr. of tax guilt stirs memories.

Fathers then had a way of instilling taxes in young people. From the age of 13 in 1969, as the eldest son, I was assigned to line up at Quezon City Hall to get property and business assessments. I would come back a week or two later to realign and remit check payments. Male friends and cousins ​​of the same age did the same for relatives in Manila, Pateros and elsewhere. Sweaty runs in the days when there was no air conditioning in buses and offices. A far cry from when Sonny Belmonte, after becoming mayor of QC in 2010, started serving espresso in a special taxpayer lounge. More difficult was the task of paying income tax for Dad each March; lines at the BIR building snaked up to two blocks.

Only six years after Dad’s death in 1980, the family was able to pay inheritance tax plus penalties and surcharges. We siblings inherited about 130,000 pesos each, enough money for me to take out a small mortgage. There is no escape from death and taxes. From retired Supreme Court Justice Antonio Carpio, Filipinos are now learning that the law requires even the heirs of looters to pay income and inheritance taxes.

]]>