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Economics/inheritance tax



This is a hypothetical question.

Suppose I inherit a 10 million property in USA.

It has zero income. And maintenance costs run into thousands of dollars.

I have an income  of 40k.How will I pay inheritance,property and wealth taxes without  selling this property.

Will the Government seize the property?

Please answer,

Hi Jose,

First, let me be frank: I am not much aware of the law relating to this matter.

In connection with Canada, the law here must be to a great extent like that of the U.S., I can say you have to pay inheritance tax. The question is, how can you pay the tax, and later additional taxes if applicable, without selling your 10-million-dollar property?

Again, another question pops up: Where in the U.S. is the property located? In California it might mean huge landed area, and you may be like a king. In Michigan it may mean about 40/50 homes. In New York, it may mean 5/6 homes or about 10 condos. In any case, whatever property you inherit, that is something like that or can be converted into that.

No property has zero income unless otherwise this belongs to a fool.

You may take loan from banks, which is quite easy with such collateral. You do some business --build homes, set up grocery stores, or buy franchise from Starbucks, and start making money, paying the mortgage and interest charges, paying the taxes, and building up further wealth.

One who owns $10m property is sought after by banks and other institutions for business. There are ample opportunities in the U.S. to get down to business with the backing of this wealth. Sam Walton could start his retail store and pull along well because his in-laws with large wealth was his backing for expanding business into the giant retail stores under the name of Walmart.

As to your question, whether the government will seize the property, take it for granted that this is to the U.S. government a tiny value, and the capitalistic society of the U.S. values wealth. Unless there is anything illegal attached to it, or any crime associated with it, this will never be seized by the U.S. This was the case for Russian or China. This will never be the case for the U.S.

I hope this satisfies your query.


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Eklimur Raza


It appears some students in this website are confused about elasticity of demand and the slope of the demand curve when they are trying to figure out why rectangular hyperbola comes up in case of unitary demand curve. First, they don't know that RH can be depicted in a positive quadrant of price,quantity plane. Secondly, they make the mistake that the slope of RH is constant at -1. Two points could help them: first, e=1 at each and every point of the RH, because the tangent at any point shows lower segment=upper segment (another geometric definition of e); yet slopes at different points,dQ/dP, are different; second, e is not slope but [(Slope)(P/Q)]in absolute terms. Caveat: only if we measure (log P) along the horizontal axis and (log Q) up the vertical axis, can we then say slope equals elasticity --in which case RH on P,Q plane is transformed into a straight-line demand curve [with slope= -tan 45 deg] on (log Q),(logP) plane, and e= -d(log Q)/d(log P). [By the way, logs are not used in college textbooks --although that is helpful in econometric estimation of elasticity viewed as an exponent of P, when demand equation is transformed into log-linear form.] I have not found the geometrical explanation I have given in any textbook followed in undergraduate and college classes in Canada (including the book followed in a university where I taught for a short time and in the book followed in George Brown College, Toronto, where I teach.


About 11 years' teaching economics and business studies, and also English, history and elementary French.Practical experience in a development bank, working with international donor agencies like the World Bank and the ADB. Experience in free-lance journalism, including Canada's "National Post."

I teach micro- and macroeconomics at George Brown College (continuing education), Toronto, ON, Canada.

Many articles and editorials, on different subjects, in English newspapers. Recently an applied Major Research Paper, based on a synthesis of the Solow growth model and the Lewis two-sector model, has be accepted by Ryerson University, Toronto. Professors Thomas Barbiero and Eric Cam, Ryerson University, accepted the paper.

Master degree in Interantional Economics and Finance and diploma with honours in Business Administration from Canada.

Awards and Honors
Received First Prize in an inter-university Literary Contest.

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