Blog Entry

Yankees won't be taxed for Steinbrenner death

Posted on: July 13, 2010 2:13 pm
Edited on: July 13, 2010 5:00 pm
 
When a person passes away and his or her estate passes to the heirs, there is generally an estate tax levied by the government to transfer control.

This applies to the Yankees, as the death of George Steinbrenner means baseball's most successful franchise will now transition to Hank and Hal Steinbrenner -- except without an estate tax.

As Jill Schlesinger of CBS MoneyWatch notes , the tax year of 2010 does not include an estate tax, which was put in place when the Bush Administration levied tax cuts back in 2001. This means that Steinbrenner's $1.1 billion estate can pass to his heirs without penalty in the form of about $500 million payable to the government.

While the Yankees certainly aren't strapped for cash, the roughly $500 million that is saved from the lack of an estate tax can only mean that much more the team has to spend. Cliff Lee's agent must be thrilled.

-- Evan Brunell

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Category: MLB
Comments

Since: Nov 12, 2007
Posted on: July 13, 2010 10:34 pm
 

Yankees won't be taxed for Steinbrenner death

has anyone seen the body? he might be hanging out with Elvis.



Since: Mar 21, 2010
Posted on: July 13, 2010 10:24 pm
 

Yankees won't be taxed for Steinbrenner death

There is alot of misinformation being spread about the estate tax (a.k.a. the death tax).

Up until last year (2009) the first 3.5 million dollars of a person's estate was excluded from the estate tax, so that many (but not all) people upon their death were not paying that tax.

For this year (2010) there will be no estate tax.

Next year (2011) the estate tax will be back with avengance. As it stands right now (and it is subject to change come this December) only the first 1.0 million dollars of a person's estate will be excluded from the estate tax.

In addition to that there is no longer a step-up in cost basis on stock transfers. Under the old rules (prior to 2010) if a relative passed away and gave you stock of General Electric for example you could simply calculate the costs basis (the purchase price) by using the price that it closed at on the day that your relative died. This old rule pretty much reduced if not eliminated the capital gains tax that someone would have to pay. Under the new rule not only do you not get to step up the basis but you have to take the stock at the price your relative purchased the stock at and are accountable for all stock splits on that stock, which means you are going to be paying alot more in the way of capital gains tax.

The bottom line is that more and more people not just the rich and wealthy are going to be bitten by the new estate tax rules that go into effect in 2011.

Furthermore, nobody should begrudge any of the Steinbrenners or the New York Yankees organization because this is how the tax system has been set up by the government. They did not make these rules, and are merely complying with them.

 



Since: Oct 2, 2006
Posted on: July 13, 2010 10:10 pm
 

Yankees won't be taxed for Steinbrenner death

In this country, the "government" is an embodiment of the people (except before Emancipation and Suffrage, of course, and except now for those who've served their time in federal prison).

The only "disrespect" shown in this instance is the contempt for hardworking Americans shown by a powerful elite who have hornswaggled idiots like you.



Since: Jul 13, 2010
Posted on: July 13, 2010 9:59 pm
 

Yankees won't be taxed for Steinbrenner death

Shame on you for the timing of your disrespectful comment and for the partisan dig. Even in death the government wants its grubby hands on other people's money.


Farmer_Ted
Since: Sep 15, 2008
Posted on: July 13, 2010 9:23 pm
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Since: Oct 2, 2006
Posted on: July 13, 2010 9:14 pm
 

Yankees won't be taxed for Steinbrenner death

I'm a Yankees diehard ... and I am disgusted.

This is a prominent example of how the rightwing, and Republicans in particular, are ruining this country by creating an unbridgeable chasm between the super-rich and the rest of the country.

Congress's failure to enact an estate tax for this year is absolutely outrageous.  Sports fans, who are generally too myopic and ignorant to understand how the rich have made war upon, and utterly defeated, the working class in this country, ought to extrapolate from their current feelings:

just as the rich get richer in baseball (namely, Yankees) and the poor get screwed, so it is with the society at large.

As a Yankees fan I might love it; but as a citizen, I'm outraged.


Farmer_Ted
Since: Sep 15, 2008
Posted on: July 13, 2010 9:12 pm
This comment has been removed.

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Since: Sep 14, 2006
Posted on: July 13, 2010 8:58 pm
 

Yankees won't be taxed for Steinbrenner death

If it doesn't interest you, don't read it.



Since: Jan 12, 2007
Posted on: July 13, 2010 8:42 pm
 

Yankees won't be taxed for Steinbrenner death

Heaven forbid Hank actually get a job.    He should have left it to charity and make his sons earn a living.   No wonder the US continues to be the least mobile capitalistic society in the world.    



Since: Mar 8, 2007
Posted on: July 13, 2010 8:42 pm
 

Yankees won't be taxed for Steinbrenner death

Look, I've hated the Yankees for 50+ years, but that's competition.  I'm from Detroit, and at one point while I was growing up the Tigers had the 2nd best record in the history of the AL, but you know who was first, don't ya?  And the Tigers had finished 2nd ELEVEN times to NY during the era when only two teams made the "playoffs", and those teams played for the World Series rings.


I've always hated the fact that the Yankees could buy titles just because they had more money than anyone else. BUT... I blamed (and still do) MLB for that way more than I do NY.  Steinbrenner earned his money himself, and he played by the rules of the game.  That the rules suck rocks was never his fault, and if I had his money I would have been thrilled to spend it on a few more trophies for Detroit.

All of that aside for the moment, let's look at that hated (by more than a few loud and insulting voices around here) estate tax the article was about.

George Steinbrenner EARNED that money.  I don't begrudge him a dime of it.  But his kids, his family, and anyone else included in the estate didn't EARN any of that.  Let's hope they were supportive of Daddy George, loved him and all that stuff we all should be so lucky to have.  But they are supposed to do that anyway, not just because the old SOB is worth a billion plus buckolas.

So Geaorge earned his money.  If he wanted to leave a nice chunk of change for folks he certainly could do just that.  But why do some of you people think that those included in his estate "deserve" every dime of it when they didn't earn a penny of it?  Y'all believe in some genetic lottery ticket?  If you're born into a rich family then "Woohoo! I hit the jackpot!" and you walk away with millions/billions no matter who you are or what you do with your life?

Sorry, I don't buy it.  I think of the estate tax as OUR tax.  The peoples tax.  It's the one time when all those businessmen and businesswomen, those entrepreneurs, those folks who had rich parents... this is the one time when WE tax them, instead of the other way around.  It's our money we spent that helped them be successful, so the least they can do is give some of that back when they don't have any use for it anymore.

You wanna call it something with bad connotations like a "death tax"?  Go right ahead.  I don't care what you call it.  After all your life was spent earning money from the public, I think it's only fair that when you go you return the favor.





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