A non-EU custom charges tale (beware!)

[Jaeger]

Aye Up,

Handbags re-shouldered, I feel safe to jump back in.

It wouldn't be so bad if HMRC had their act together and when they owed us money they paid it - and promptly but they don't - frequently.

But the situation wouldn't happen if we had an appropriate trade deal with the US - i.e. - no VAT; no import duty; free shipping; UK discount! (I can dream can't I?)

Come to think of it - as the 51st state shouldn't that be the case anyway?

 

[Corso]

A trade deal with the US would be madness under the current administration

 

[Jaeger]

Aye Up Corso,

It's all in the detail - note the word 'appropriate'!

 

[santaman2000]

..... some taxes hit us after our death, but then who cares?).....

Well most likely the familly that loses the farm they grew up on.

 

[Janne]

Well most likely the familly that loses the farm they grew up on.[/

 

[Old Bones]

Well most likely the familly that loses the farm they grew up on.

If its the US Estate Tax, then only 0.18% of estates had to pay that at all in 2013 https://www.washingtonpost.com/news...state-tax-and-farmers/?utm_term=.c9713da1316c . Only 2 out of a 1000 estates will pay Federal Estate Tax in 2017, http://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

The actual amount you pay is based on the value of the estate, and you only start to pay if the value exceeds $5.49m per person (effectively $10.98m per couple), and even then its levied at 40%. When Forbes doesn't think the family farm is in danger http://fortune.com/2015/04/13/death-tax-killing-american-family-farms/ , its probably not in danger.

And the chances of a US-UK 'single market' are zero.

Getting back to the OP - importers have to put down the correct cost of something and its reason for shipping, because if they get caught, they are liable. Thats the way it is, and so are import duties. Its one of the reasons why its often worth looking at shipping and handling costs before ordering - adding everything up, and suddenly that cheap item isn't so cheap. Sad, but there it is.

 

[santaman2000]

If its the US Estate Tax, then only 0.18% of estates had to pay that at all in 2013 https://www.washingtonpost.com/news...state-tax-and-farmers/?utm_term=.c9713da1316c . Only 2 out of a 1000 estates will pay Federal Estate Tax in 2017, http://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

The actual amount you pay is based on the value of the estate, and you only start to pay if the value exceeds $5.49m per person (effectively $10.98m per couple), and even then its levied at 40%. When Forbes doesn't think the family farm is in danger http://fortune.com/2015/04/13/death-tax-killing-american-family-farms/ , its probably not in danger.,,,,

Actually the inheritance tax is triggered at $1million. Total value; regardless of how many heirs share in it. At $6000 per acre a farm as small 150 acres can trigger it before the value of the buildings and livestock are added. Much smaller farms will trigger it with the livestock and building values added. 40% of $1million is still $400,000. That's more than the heirs will have on hand unless they sell the farm to raise it.

It happens every day. Forbes isn't a farmer.

 

[Janne]

ommmmmmmmmmmm

 

[santaman2000]

most likely they do not live there, but live and work somewhere else. They still will profit from the sale.

Most move home when they retire. In any case, where they live and work is irrelevant. Sales taxes on the property were paid to the state when it was bought. Income taxes on all profits made on the property while it was worked were paid to the federal government (and in most cases to the state government as well) Property taxes are paid to the county every year. A death tax is both a redundant tax and immoral in and of itself.

 

[santaman2000]

Bank loan with the farm as security?
I built up my business wit a fat bankloan.

Sometimes possible. But at the lower end value, an extra $400,000 loan will be more than most families can pay off. Of course if the deceased had a life insurance policy to cover it? But most young, healthy people don't, and most older people can't afford the insurance rates.

 

[Janne]

Most move home when they retire. In any case, where they live and work is irrelevant. Sales taxes on the property were paid to the state when it was bought. Income taxes on all profits made on the property while it was worked were paid to the federal government (and in most cases to the state government as well) Property taxes are paid to the county every year. A death tax is both a redundant tax and immoral in and of itself

 

[santaman2000]

Income tax on your pension is immoral too. In Sweden we pay that. Not that I will ever move back.

It varies here. Some states tax pensions and others don't. The federal government taxes some pensions but not others. At least they give an extra exemption (credit for another dependent) if you're over 65 or disabled.

And yeah, taxing them at all is immoral. With one exception: the original IRA or 401k accounts. When you invested in either of them you didn't have to pay tax on the money invested. Therefore when you withdraw it as a pension it has never been taxed before so yeah, that type pension is fair to tax.

 

[Quixoticgeek]

I think my biggest bug bare on these things is the £8 quid handling fee that's stuck on there by the UK delivery company when it gets to the UK. Particularly if you order stuff that is just over the threshold of when they charge (note there's no fee's upto a set amount £25?).

These days there are a number of companies that make this more cost effective, your US seller posts the item to an address in the US, where a company handles all the tax stuff, then usually puts it in another box, before shipping it across the pond to the EU. This works out much more cost effective than the usual delivery options then being stung at this side. If you buy on ebay many sellers who are in their global program use an ebay derived company like this to allow them to ship world wide.

J

 

[Old Bones]

Actually the inheritance tax is triggered at $1million. Total value; regardless of how many heirs share in it. At $6000 per acre a farm as small 150 acres can trigger it before the value of the buildings and livestock are added. Much smaller farms will trigger it with the livestock and building values added. 40% of $1million is still $400,000. That's more than the heirs will have on hand unless they sell the farm to raise it.

It happens every day. Forbes isn't a farmer.

Forbes isn't a farmer - its a business publication so wedded to the free market that its founder had 'Capitalist Tool' emblazoned along the side of his private DC9. But I also checked with at least two US private companies who specialise in tax liablities and planning, and the IRS itself.

http://www.trustsestateselderlawct.com/blog/what-estate-tax-exemption-2017 -

[FONT=&quot]The estate tax is a tax on the value of property transferred at death. Property includes life insurance, retirement plans, real estate, investments and tangible personal property like cars, jewelry, and artwork. The federal estate tax exemption for 2017 is $5,490,000. Thus, if an estate is worth less than that amount, no federal estate tax will be due.[/FONT]

The IRS - https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax -

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[h=1]Form 706 Changes[/h]The basic exclusion amount (or applicable exclusion amount in years prior to 2011) is $1,500,000 (2004-2005), $2,000,000 (2006-2008), $3,500,000 (2009), $5,000,000 (2010-2011), $5,120,000 (2012), $5,250,000 (2013), $5,340,000 (2014), $5,430,000 (2015), $5,450,000 (2016), and $5,490,000 (2017).

There may be state estate taxes, but tax planning will also bring those down.

I think my biggest bug bare on these things is the £8 quid handling fee that's stuck on there by the UK delivery company when it gets to the UK. Particularly if you order stuff that is just over the threshold of when they charge (note there's no fee's upto a set amount £25?).

These days there are a number of companies that make this more cost effective, your US seller posts the item to an address in the US, where a company handles all the tax stuff, then usually puts it in another box, before shipping it across the pond to the EU. This works out much more cost effective than the usual delivery options then being stung at this side. If you buy on ebay many sellers who are in their global program use an ebay derived company like this to allow them to ship world wide.

'Handling charges' are one of those delights when ordering abroad, although obviously not the EU. Shipping can be the real killer - on Ebay it can significantly outweigh the cost of the item itself. But beware the EU shipping programme - I (and my seller) had a nightmare with Ebay over that service, with the net result that not only did it cause a lot of hassle, but Ebay managed to send my package to the wrong person. We ended up swapping packages and Ebay refunded the costs of everything, so it came OK in the end, but its not something I recommend.

 

[santaman2000]

Forbes isn't a farmer - its a business publication so wedded to the free market that its founder had 'Capitalist Tool' emblazoned along the side of his private DC9. But I also checked with at least two US private companies who specialise in tax liablities and planning, and the IRS itself.

http://www.trustsestateselderlawct.com/blog/what-estate-tax-exemption-2017 -



The IRS - https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax -



There may be state estate taxes, but tax planning will also bring those down.....

I also checked with a lawyer; the ones who made my will. I know exactly what Forbes is, and they're indeed wrong (or the Air Force lawyers who did my will are) The inheritance tax (death tax) liability started at $1 million about 15 or 20 years ago and was supposed to go up a percentage every year until it reached $10 million and then disappear altogether a year or two later. Instead, it did indeed go up a certain percentage every year UNTIL a certain election and then it went back to the $1 million trigger it was when I last had my own will updated 2 years ago. Mind, my own estate is below the threshhold. FOR NOW. I only have 73 acres in Mississippi valued at about $6,000 per acre plus the house here valued at about $150,000 plus about $300,000 in retirement investments and savings accounts. That leaves me just $112,000 short of the cut-off. Inflating land values will likely change that in a few years.

Thanks for reminding me of the State taxes though, I'd forgotten them as my property is divided in different states and probably the land in each state won't be counted by the other. I need to check that again though.

You're right about estate planning though. I plan to sell the land to my daughter for a $10 total in a few years assuming I don't die suddenly before that.

 

[acheter]

It happens every day. Forbes isn't a farmer.

 

[santaman2000]

I once crossed the border into Mexico from the USA on a day visit. I'd never tasted tequila and it was only about a dollar a bottle in those days so I bought one to try it. I hadn't realised that I would have to pay a large amount of duty on it when we went back into Texas: equal to nearly twice the original cost of the bottle. SWMBO was lived as we were on a very tight budget. The worst thing was that it tasted pretty awful but she said, "You bought it: you drink it!" Pride made me sip it with simulated enjoyment in the evenings round the campfire. That bottle seemed bottomless: it only single malts and vieux armagnac bottles lasted that long!

I had to look this up to understand why you were taxed. Usually you can import a certain amount of alcohol duty free: 1 case of still wine (12 bottles) and lesser amounts of sparkling wine/champagne or spirits such as tequila. When I looked it up though, it appears that only applies if you have been out of the US for at least 48 hours (apparently the intent of the law is to prevent somebody from just hopping across the border on regular shopping trips just to avoid taxes.

 

[Janne]

ommmmmmmmmmmmm

 

[demographic]

Well at least in the post Brexit Britain we can also pay extra (using our now rather de-valuied pound) for the stuff coming from the EU as well, wouldn't want things to be unfair for American traders would we.

Oh, hang on a bit...

 

[dasy2k1]

I have no beef with paying the import tax, where I have the problem is with the huge admin free and then the couriers handling fee and the other fees...

Case in point, I ordered some clothing from the USA once, about £30 worth all in including the shipping charge....

Vat payable of about £4 no biggie....

Then HMRC charged an £8 admin fee, and the courier charged another £15 fee for paying the customs bill on my behalf!

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