ICanSleepWhenI'mDead Posted October 7, 2011 Share Posted October 7, 2011 (edited) Hopefully this means there is a plan in place to keep the Bills in Buffalo for the long term. Maybe Ralph agreed to purchase price with a potential buyer to make things easier for his estate when he passes? Also to any tax experts out there, what would be the tax burden to his heirs if he were to sell the team now and divide the profits amongst those named in his estate now prior to his death P.S. Page 10!!!! I don't claim any particular education or expertise, but for an estate as big as Ralph's will be, the total overall tax burden created by giving stuff away before you die (rather than passing it through your will) is pretty negligible. There's something called the "gift tax" that comes into play for wealthy individuals like Ralph: http://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax/INF12036.html The federal gift tax exists for one reason: to prevent citizens from avoiding the federal estate tax by giving away their money before they die. If you want more details, there's a pretty good explanation in the link. Edit: And remember that if Ralph sells the team before he dies, he pays capital gains taxes on the sale profits - - in addition to the eventual estate taxes that would still have to be paid anyway. So if Ralph wants to maximize how much net after-all-taxes money he leaves to his family, there are very few circumstances, given the life expectancy of a man his age with a broken hip, that would make it financially prudent to sell the team before he dies. If he changes course from his 2007 public comments and sells the team before he dies, it would very likely be for non-financial reasons. Edited October 7, 2011 by ICanSleepWhenI'mDead Link to comment Share on other sites More sharing options...
clancynut Posted October 7, 2011 Share Posted October 7, 2011 I don't claim any particular education or expertise, but for an estate as big as Ralph's will be, the total overall tax burden created by giving stuff away before you die (rather than passing it through your will) is pretty negligible. There's something called the "gift tax" that comes into play for wealthy individuals like Ralph: http://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax/INF12036.html If you want more details, there's a pretty good explanation in the link. Thanks for that I also found this article on Reuters. "I don't think anybody in Congress realized this," said Michael Gooen, a tax and estate attorney at Lowenstein Sandler. The point is that not only will the $5 million estate-tax exemption ($10 million for a couple) remove the vast majority of formerly taxable estates from the estate tax, but rather that the higher gift-tax exclusion means that people with far larger estates than that -- think $50 million, $100 million, and up -- have the ability to shift assets out of their estates tax-free while they're alive. "You are going to see a flurry of estate planning," Gooen said. Could this be the reason for a possible sale now? Reuters Link Link to comment Share on other sites More sharing options...
John Adams Posted October 7, 2011 Share Posted October 7, 2011 Fred Kelly just tweeted "I think I'll like my new seats...more to follow." Link to comment Share on other sites More sharing options...
saundena Posted October 7, 2011 Share Posted October 7, 2011 Fred Kelly just tweeted "I think I'll like my new seats...more to follow." Fred Kelly is Jimbo's dad, brother? Link to comment Share on other sites More sharing options...
jimmy10 Posted October 7, 2011 Share Posted October 7, 2011 Gene Kelly just tweeted: I'm singing in the rain! Link to comment Share on other sites More sharing options...
erynthered Posted October 7, 2011 Share Posted October 7, 2011 Grace Kelly just tweeted: I'm falling for you........AHHHHHHHHHHHHHHHHHHHHH Link to comment Share on other sites More sharing options...
ICanSleepWhenI'mDead Posted October 7, 2011 Share Posted October 7, 2011 Thanks for that I also found this article on Reuters. "I don't think anybody in Congress realized this," said Michael Gooen, a tax and estate attorney at Lowenstein Sandler. The point is that not only will the $5 million estate-tax exemption ($10 million for a couple) remove the vast majority of formerly taxable estates from the estate tax, but rather that the higher gift-tax exclusion means that people with far larger estates than that -- think $50 million, $100 million, and up -- have the ability to shift assets out of their estates tax-free while they're alive. "You are going to see a flurry of estate planning," Gooen said. Could this be the reason for a possible sale now? Reuters Link Interesting article - thanks. I need to think about the ramifications a bit. Even though the changes in the law potentially benefit people like Ralph, I have a hard time seeing how they would financially outweigh the "double taxation" caused by paying capital gains taxes on a sale during Ralph's lifetime, followed by estate taxes that are calculated based on his net worth at time of death (see the "Edit" I added to my most recent post above). If the new gift tax law somehow lets Ralph shelter an additional $9 million from gift/estate taxes (compared to the $1 million under the old law), isn't that benefit still going to be a lot less than 15% of his as-yet-unrealized profit on the sale of a roughly $800 million asset that he bought for something like $25,000 many years ago? Wouldn't a pre-death sale of Ralph's stock in Buffalo Bills, Inc. trigger a federal capital gains tax of very roughly ($800 million X 0.15) = $120 million? I'm open to anyone's ideas, but I can't see how the gift/estate tax law changes could save Ralph enough money to overcome the burden of about $120 million in federal capital gains taxes that he would be required to pay for a pre-death sale. Link to comment Share on other sites More sharing options...
Hammered a Lot Posted October 7, 2011 Share Posted October 7, 2011 (edited) Grace Kelly just tweeted: I'm falling for you........AHHHHHHHHHHHHHHHHHHHHH WWE Diva Kelly Kelly said she liked to slam me!!! Edited October 7, 2011 by Hammered a Lot Link to comment Share on other sites More sharing options...
Kevin Posted October 7, 2011 Share Posted October 7, 2011 Hey, don't you all think that you are taking this a little too far? I mean, really, if there was going to be an eventual change in ownership then wouldn't you think all of the major networks would have sources leak this info out? I see a lot of hope and optimism here, but I seriously think it is going to shape up to be nothing. Just saying. Link to comment Share on other sites More sharing options...
dancing_joker Posted October 7, 2011 Share Posted October 7, 2011 Fred Kelly just tweeted "I think I'll like my new seats...more to follow." No that was Eklund Kelly (e4) Link to comment Share on other sites More sharing options...
BillsfaninFl Posted October 7, 2011 Share Posted October 7, 2011 Calm down, everyone. Chad is being interviewed on Saturday for a job with the organization. I think they want him to videotape the other team's signals during the game. Link to comment Share on other sites More sharing options...
The Senator Posted October 7, 2011 Share Posted October 7, 2011 WWE Diva Kelly Kelly said she liked to slam me!!! Kelly Bundy just tweeted: I hope he doesn't make a testicle out of himself. Link to comment Share on other sites More sharing options...
Ozymandius Posted October 7, 2011 Share Posted October 7, 2011 This kid needs to get punched in the face and it'd be to his benefit. Link to comment Share on other sites More sharing options...
DaveinElma Posted October 7, 2011 Share Posted October 7, 2011 Has anyone pointed out that Roger Goodell is coming to Buffalo this weekend? http://blogs.buffalobills.com/2011/10/07/goodell-to-meet-with-fans/ Link to comment Share on other sites More sharing options...
The Wiz Posted October 7, 2011 Share Posted October 7, 2011 Has anyone pointed out that Roger Goodell is coming to Buffalo this weekend? http://blogs.buffalobills.com/2011/10/07/goodell-to-meet-with-fans/ So is he the man he plans on meeting??? I thought it was "thee new man"? Link to comment Share on other sites More sharing options...
DaveinElma Posted October 7, 2011 Share Posted October 7, 2011 So is he the man he plans on meeting??? I thought it was "thee new man"? No but maybe there is some sort of meeting between Goodell and a potential ownership group going on this weekend? Link to comment Share on other sites More sharing options...
papazoid Posted October 7, 2011 Share Posted October 7, 2011 Has anyone pointed out that Roger Goodell is coming to Buffalo this weekend? http://blogs.buffalobills.com/2011/10/07/goodell-to-meet-with-fans/ hey PTR...you get invited to this one too ? Link to comment Share on other sites More sharing options...
saundena Posted October 7, 2011 Share Posted October 7, 2011 No but maybe there is some sort of meeting between Goodell and a potential ownership group going on this weekend? I thought Goddell was coming into town to assassinate Vick.... Link to comment Share on other sites More sharing options...
papazoid Posted October 7, 2011 Share Posted October 7, 2011 No but maybe there is some sort of meeting between Goodell and a potential ownership group going on this weekend? no doubt !!....meeting fans is his cover excuse to be here....somethin big is going down..... Link to comment Share on other sites More sharing options...
saundena Posted October 7, 2011 Share Posted October 7, 2011 (edited) no doubt !!....meeting fans is his cover excuse to be here....somethin big is going down..... Quick, to the Hindenpeter! 11! Edited October 7, 2011 by saundena Link to comment Share on other sites More sharing options...
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