Saturday, March 07, 2015

The only constants in life are death and taxes.

When people die and leave property behind, there can be a settlement of the estate of the deceased. First, pay all debts and taxes of the deceased. Second, have an extrajudicial or judicial  settlement of the estate. Third, pay the estate tax based on the settlement, Fourth, partition the property.

Dean Danilo Concepcion once said that estate tax and donor's tax are higher than the capital gains tax  in sales transactions because the people who donate their property can afford to do so, while those who sell their property may actually need the money. That's why they are selling.


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