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<blockquote data-quote="Kenny Coyote" data-source="post: 201350" data-attributes="member: 102">Steve, I&#039;ve got a question about that. Ranching isn&#039;t a high profit industry relative to the value of the land it requires (as far as I know). Shouldn&#039;t the gift tax be based on how profitable the ranch is? I mean, how is Southfork Ranch worth billions of dollars of they make maybe $15 million dollar a year?&nbsp; If Southfork even makes $50 million a year, how could any ranchers pass their ranch down to their kids? If the tax is say half billion dollars, but they&#039;re only profiting $10 million or even $20 million a year, it&#039;s just not possible to do. Yet, hadn&#039;t Southfork been passed down to one generation to the next in the past? How would Miss Ellie and Jock have afforded the inheritance tax when Ellie inherited it? Thanks!Also, suppose Miss Elle left it in her will to Bobby instead. Then there&#039;s the inheritance tax, right? Which is higher, a gift tax, or an inheritance tax?</blockquote>

[QUOTE="Kenny Coyote, post: 201350, member: 102"] Steve, I've got a question about that. Ranching isn't a high profit industry relative to the value of the land it requires (as far as I know). Shouldn't the gift tax be based on how profitable the ranch is? I mean, how is Southfork Ranch worth billions of dollars of they make maybe $15 million dollar a year? If Southfork even makes $50 million a year, how could any ranchers pass their ranch down to their kids? If the tax is say half billion dollars, but they're only profiting $10 million or even $20 million a year, it's just not possible to do. Yet, hadn't Southfork been passed down to one generation to the next in the past? How would Miss Ellie and Jock have afforded the inheritance tax when Ellie inherited it? Thanks! Also, suppose Miss Elle left it in her will to Bobby instead. Then there's the inheritance tax, right? Which is higher, a gift tax, or an inheritance tax? [/QUOTE]

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