Secondly; the market structure of the real estate industry is imperfectly competitive which extends yet another explanation why the real estate sector sets land prices at higher than efficient levels.
Couples in a stable first marriage generally set up estate plans designed to make use of the estate tax exemption of the first spouse to die, without leaving the surviving spouse short of funds.
President Obama had sought to set the estate tax permanently at its already-generous 2009 parameters, under which the estates of 99.7percentt of Americans who die were passed on tax free.
And yet in recent weeks, several big deals in New York City have set real estate circles abuzz.
And it would set new estate tax parameters, including the exemption of $5 million per person, or $10 million per couple, and a maximum rate of 35 percent.
That's because ultraluxury buildings are assessed at ludicrously low percentages of their actual value under the arcane state laws that set real estate valuations for tax purposes.
The agreement between President Obama and the Republicans would set an estate tax exemption of $5 million per person, and a maximum rate of 35 percent, for two years.
The agreement would extend all of the Bush-era tax rates, even on the highest incomes, maintain the reduced rate of 15 percent on capital gains and dividends and set new estate tax parameters, all for the next two years.
At the start of the 18th century, English landowners set up estates along Moriches Bay.
Congress will probably set an estate-tax rate well above zero but below 55% for 2011 one Senate proposal calls for 35%, and Mr Obama has suggested 45%.
