Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: katiewa Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120826  
Subject: Re: re post above estate tax avoidence Date: 11/19/2009 10:53 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 30
A little over 2 decades ago, my husband's boss (at a government contracting corporation) was to be promoted to a more senior position. As part of the background check, it was discovered that boss owned a small engineering firm that sometimes contracted with boss's employer. Boss was told this was not allowed for the new position and boss would have to dispose of his interes. There was NEVER any indication of actual wrong-doing, abuse of position, unfair competition, etc. My husband is quite sure that his boss bent over backwards to ensure that he never gave his own company advantage over another.

Boss said, "No problem" and apparently disposed of his interest in the engineering firm. A few years later it was discovered that he had transferred his shares to his father, his father paid income tax (at a pretty low rate compared with boss's tax bracket) on the income from those shares, father gave income from shares to boss, who reimbursed father for income tax paid. Boss was NOT involved in day-to-day operations of the engineering firm, and allegedly stayed out of most decisions altogether.

Boss was fired from his very highly paid position (probably $100K++ in mid-80's plus excellent benefits plus bonuses plus being in line for an executive retirement package in another 8-10 years) and charged with tax fraud by the IRS. He did some prison time, in addition to fines, penalties, and back taxes. I seem to recall that the government contractor employer also charged him with something that resulted in his having to repay certain amounts. At some point in all this, his teenage son, an excellent student and athlete, nice looking, considered a "fine young man", accidently shot himself in their basement.

Boss was considered a great person to work for; a fine, upstanding member of the community; model family man; active leader in his church; etc. He lost everything because, in spite of what he had, he wanted more (The Fisherman and His Wife, http://www.pitt.edu/~dash/grimm019.html).

Your acquaintances appear to be on the verge of doing the same thing. If they want to be "patriotic", they should go oppose the laws openly and work to change them, not expect the rest of us to cover for them by paying additional taxes. And no whining about how "a little guy" can't do anything/be heard in our government: regardless of how they feel about Obama (or Clinton, Reagan, Carter, Ford, Nixon, Johnson, Truman...), he was not born into wealth or power.

If your acquaintances follow through on this stupidity, I hope they get found out.

Kathleen
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement