- Sep 16, 2012
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This subject matter may be esoteric to some but it could have a big impact on middle class families.
What is the stepped up basis?
According to the nonprofit Tax Policy Center Stepped-up basis provides a big benefit to those who inherit certain assets, including real estate. It means that the person who inherited the asset only has to pay tax on its gains in value beginning from the time it was inherited, rather than from the time it was originally purchased.
The stepped up basis is an important estate planning tool for many middle class families.
Elimination of the stepped up basis was also considered during W.'s Administration when they considered doing away with the estate tax. They kept it but raised the unified credit limit.
It would be a HUGE mistake for the Biden Administration to do away with this or to continue to advocate for it. I doubt it would pass the House or Senate if it was seriously proposed.
In addition I would urge the Biden Administration to keep the current federal estate and gift tax exemption to $10 million (adjusted annually for inflation) through 2025. The 2021 exemption is $11.7 million for individuals and $23.4 million for married couples though that is set to expire and return to $5 million dollars in 2024.
What is the stepped up basis?
According to the nonprofit Tax Policy Center Stepped-up basis provides a big benefit to those who inherit certain assets, including real estate. It means that the person who inherited the asset only has to pay tax on its gains in value beginning from the time it was inherited, rather than from the time it was originally purchased.
The stepped up basis is an important estate planning tool for many middle class families.
Elimination of the stepped up basis was also considered during W.'s Administration when they considered doing away with the estate tax. They kept it but raised the unified credit limit.
It would be a HUGE mistake for the Biden Administration to do away with this or to continue to advocate for it. I doubt it would pass the House or Senate if it was seriously proposed.
In addition I would urge the Biden Administration to keep the current federal estate and gift tax exemption to $10 million (adjusted annually for inflation) through 2025. The 2021 exemption is $11.7 million for individuals and $23.4 million for married couples though that is set to expire and return to $5 million dollars in 2024.
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