Impacts of Federal Estate Taxation on Investments in Forestry: Comment
评论1976年税法改革中遗产税对林业土地所有者的影响，分析分期付款、人寿保险和借贷等替代筹资方式，帮助林业经营者应对遗产税导致的流动性问题。
The estate and gift tax provisions of the Tax Reform Act of 1976 contained important changes in the detail of the taxes, but did not reduce the importance of timely estate planning. The need for reform of estate and gift tax laws was articulated by small business owners, especially those with farm or forest real property. A recent article in this journal listed specific problems of forest landowners related to estate taxes, including (1) unexpectedly high estate taxes due following death and (2) lack of liquidity for funding estate taxes, which may result in untimely sale of timber (Sutherland and Tedder 1979). Sutherland and Tedder correctly demonstrate the method of calculating the federal estate tax which would be due following the death of a forest landowner with various estate sizes, based on the age, condition, and stocking of the forest. They then conclude that if the heir of the forest land would harvest timber to fund the estate tax, the largest reduction in present net value (PNV) occurred for the situation which is closest to a regulated forest. For purposes of their analysis, reduction in PNV is defined as the PNV of the forest as it is currently modeled minus the PNV of the forest if estate taxes were funded by prematurely harvesting the necessary acres of forest land. The authors conclude that purchasing life insurance or borrowing from lending institutions were alternative means of funding the estate tax. The purpose of this comment is (1) to review procedures for extending the period of time for payment of federal estate taxes by the installment payment election and (2) to evaluate life insurance purchase and borrowing from lending institutions as alternative means of funding estate taxes due.