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The Hershey Company Message Board

  • pmcgd4 pmcgd4 Oct 27, 2012 5:27 PM Flag

    federal death tax

    If you invested $10,000 in HSY 1970s, you would have quite a nice nest egg getting towards a worth of
    $1 million.
    As of 1-1-2013 the Federal Death Confiscation and Seizure Tax will take up to 55% of assets over $1 million. Republicans wanted a 0 death tax. They offered the President a golden olive branch when they accepted a $5 million limit. Obama insisted on $1 million. Thus, if you hold HSY you purchased in the 1970 and with future splits you could be sitting on $2 million in HSY stock.
    This is classic redistribution of wealth in the form of confiscation through taxation.

    The very thought of IRS agents following funerals to conduct an interview with next of kin after grave site services are concluded - - - sickens me. This is Obama's world.

    Sentiment: Strong Buy

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    • One it is not a death tax when you die you owe the Govt nothing, it is a cap gains tax on the living, a 2million estate generates a 28% cap gains tax on the heir.

      • 1 Reply to notahchort
      • It is a Death Tax because death triggers the tax.
        The heirs pay nothing upon distribution of the estate because all taxes, if any apply have been dealt with at the probate level.
        Now, thanks to the Speaker of House of Representatives, the amount exempt from any death tax is now $5,000,000 (five million).
        Say that Mr. notachort is included in Aunt Ethel's will and receives 30,000 shares of HSY valued at about $73.00 per share. The value of this bequest will be a cool $2,190,000. You do not pay any capital gains tax until you sell any stock. Suppose Mr. Notachort decides to sit and collect the quarterly dividends for the rest of his life (1.68 X 30,000) would be a nice income and consider that HSY raises it's dividend 6-10% yearly. He would pay dividend taxes, and if at his death he has accumulated 120,000 shares of HSY because of splits - - - and passes it on to his grandson - - no capital gains tax is paid until it is sold. Hopefully, the grandson will reap the benefits of the dividends and pay taxes on them as the apply.
        Ain't life grand?

        Sentiment: Strong Buy

 
HSY
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