You're right that that would be an answer.
It depends on the asset, though.
Consider a private company, solely owned by a founder.
Would that have to be sold to meet a tax obligation?
It depends on the asset, though.
Consider a private company, solely owned by a founder.
Would that have to be sold to meet a tax obligation?
Comments
The company is its own entity, so would meet its own obligation.
There may not be CGT if small business concessions apply, but if it does, perhaps allow the beneficiaries to elect to take on that liability rather than the estate.
By transferring the CGT liability to the beneficiary, they would have the opportunity to use their own resources, including borrowing capacity, to fund the CGT to avoid liquidation.
And consider a cyclical business (a farm, perhaps) whose owner dies in a drought.
Again, I'm supportive of looking at an inheritance tax. But there are wrinkles. I don't think it should be presented as problem-free.