George Steinbrenner’s Demise Saves Heirs From Paying Heavy Taxes

July 14th, 2010 - 8:20 pm ICT by GD  

By Ranjan Bhaduri
george-steinbrenner-0209-lg-57612340July 14, (THAINDIAN NEWS) The demise of George Steinbrenner, the New York Yankees owner has created sensation in the baseball circuit all over the USA and respect and tributes are pouring in from all quarters. A lot of fans of the team and the celebrities who were close to him are also expressing their grief in Twitter. However, the tax experts have found out that his demise at 80 has saved his heirs from paying a steep federal estate tax. He died at a time when the decade old federal tax long no longer exists and a new law is in the making and yet to be implemented. The heirs of the billionaire team owner are going to be benefited from this situation. Hence the US government will have to give a hefty tax amount a miss owing to legal proceedings.

It is not clear how much his estate is valued at. Therefore the exact amount of taxes that his heirs would be exempted from paying is not known. However, the estimates of the Forbes magazine state it is around $1.1 billion. Base on that estimate his heirs would have to pay an amount of $500 million in taxes to the federal government had he passed away last year instead of 2010. The accurate amount would have varied according to his estate structure.

There is no reason to think that the heirs of the late owner if the New York Yankees will be able to evade taxes forever. If they sell the assets they will definitely have to churn out capital gains tax. However, it is way lower than federal asset tax.

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