Bush tax cuts to get Senate hearing
IRS announces oil spill meeting sites

The Boss' estate tax bonanza

The latest hit to the U.S. Treasury because there's no federal estate tax comes with the death yesterday of the New York Yankees' owner.

From a tax perspective, George Steinbrenner's passing was impeccable. Or, as the Associated Press put it:

"By dying in 2010, the billionaire and long-time New York Yankees owner's wealth avoids the federal estate tax, likely saving his heirs enough money to field an entire team of Alex Rodriguezes."

July 13, 2010 - Anaheim, CALIFORNIA, UNITED STATES - epa02247608 New York Yankee fans hold up a sign saying 'R.I.P. BOSS'' as a tribute to Yankee owner George Steinbrenner who died on 13 July 2010 prior to the MLB All-Star Game at Angel Stadium in Anaheim, California, USA, on 13 July 2010. The annual game between the American and National Leagues pits the best players of both leagues against each other with the winners hosting the World Series.

With an estimated value of $1.1 billion, the Steinbrenner estate would have faced, depending on how the estate was structured, federal taxes of almost $500 million if The Boss had passed away last year, says the AP.

Sen. Jim Bunning (R-Ky.), a former Major League Baseball pitcher, also noted the tax implications of Steinbrenner's death during today's hearing on the expiring 2001 and 2003 tax cuts.

Bunning pointed out that if the Yankees owner had lived into 2011, his estate would have faced $600 million in estate taxes under the terms of the law's impending resurrection.

But now, even if Steinbrenner's heirs immediately sell assets and pay capital gains taxes, the best that the Treasury could hope for, according to AP calculations, would be a $165 million tax bill.

The death of the estate tax, therefore, means a tax break of about $328 million this year.

A-Rod's 2010 salary, notes the wire service, is $32 million.

Related posts:

Want to tell your friends about this blog post? Click the Tweet This or Digg This buttons below or use the Share This icon to spread the word via e-mail, Facebook and other popular applications. Thanks!


Feed You can follow this conversation by subscribing to the comment feed for this post.


As I understand it, it depends on what arrangements a person makes for his/her estate. The spousal exemptions apply if all is left to the spouse, but it an estate is parceled out, for example, to children, charities, etc., it changes things. Any estate tax experts out there want to chime in?


I thought George's wife was still alive? Doesn't that make the estate tax a moot point?


R.I.P George Steinbrenner

The comments to this entry are closed.