ALERT - HUGE CHANGES TO INHERITED PROPERTY TAXBiden's administration wants to get rid of something called "stepped up basis." How does this affect you?
Under current tax law, when your parents pass and leave you the family home and you sell it, you would only pay taxes on the capital gains between what it is worth today and what it sells for.
If Biden does away with "stepped up basis," when you inherit the property, you will have to pay tax on the difference between what your parents originally paid for the property...and what you end up selling it for.
Example Under the Current Policy:Inherited House at Current Value - $200,000
Sells for $205,000
Your taxable income = $5000
Taxes Due - 20% of $5000 = $1000
Your inheritance = $204,000
Under the proposed Biden Policy:Inherited House at original purchase price - $40,000
Sells for $205,000
Taxable income = $165,000
Taxes Due - 20% of $165,000 = $33,000
Your inheritance = $172,000
Imagine the impact to farm and ranch land. [
Read more ]
