Nice problem to have
Being double taxed is never a nice problem.
No one person is being double taxed. The deceased was taxed once and then the inheritor is taxed once.
Samsung's Lee family to pay over $10.8B inheritence tax
11–20 of 46 posts
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#12Nice problem to have
Except the inheritance is in shares but the tax is cash.
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#13Nice problem to have
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
You could refuse the gift?
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#14Nice problem to have
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
That seems very far-fetched. For one, you can refuse gifts. Furthermore, I'd assume that the tax is based on fair market value, and if they can't sell the building because no one wants to buy it, doesn't that mean that the market value is $0?
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#15Nice problem to have
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
But that doesn't make any sense. The building should have to be sold first before appraising its value. Non-withstanding the difficulty of timing your own demise, I think you could at least reject the very dubious gift at least?
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#16Nice problem to have
"50% rate... a premium can be added to shares if the deceased has a controlling interest in a company, potentially taking the top rate even higher" I have to wonder, there's a huge incentive to instead have the person somehow give huge gifts to everyone before death, right?
Generally the gift tax rate is comparable to the estate tax rate to avoid this loophole. From a quick Google search it seems the gift tax in South Korea can be up to 50%.
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#17Earlier quoted context omitted.
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
That seems very far-fetched. For one, you can refuse gifts. Furthermore, I'd assume that the tax is based on fair market value, and if they can't sell the building because no one wants to buy it, doesn't that mean that the market value is $0?
I don't know how it works in South Korea but in the US, appraisals don't require having to sell the building. Similarly, for insurance purposes, they need to determine a value without having to sell the building.
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#18Earlier quoted context omitted.
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
That seems very far-fetched. For one, you can refuse gifts. Furthermore, I'd assume that the tax is based on fair market value, and if they can't sell the building because no one wants to buy it, doesn't that mean that the market value is $0?
> if they can't sell the building because no one wants to buy it, doesn't that mean that the market value is $0?
I think it's based on comparable buildings and what they sold for recently.
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#19Nice problem to have
Last time I heard about this, there was some south koreans explaining this is very not nice, that the laws are silly, and can be weaponized. For example you can gift someone a expensive building right before your death, because when you do die, they will be forced to pay so much inheritance tax, that they would have to sell the building, since selling the building is quite hard, it is likely the person will just go b…
You aren't obligated to accept anything given to you as a gift or in a will.
Re: Samsung's Lee family to pay over $10.8B inheritence tax
#20Nice problem to have
"50% rate... a premium can be added to shares if the deceased has a controlling interest in a company, potentially taking the top rate even higher" I have to wonder, there's a huge incentive to instead have the person somehow give huge gifts to everyone before death, right?
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