Originally Posted by Rochard

This tax is horrible. It slams the middle class.

A friend of mine recently lost her father. He owned an apartment complex, a nice house, a vacation home, two nice cars... Once she sat down with his accountant she discovered the truth. The apartment complex hadn't made money in some time and was failing, and was behind on all of it's bills. To continue his lavish lifestyle he refinanced his house taking most of the money out of it. The vacation home wasn't his home at all but a lease, one of the cars was leased and she had to pay to get rid of it, and the other car was worth less than was due on it. He also had $100k in credit card debt.

On paper she inherited millions. But the reality is she had to pay taxes on a business that was failing and a house that was completely underwater. She went straight into bankruptcy because of all of this, but still had to pay taxes on it.

Thankfully my mother and I have already prepared for this.