(04-29-2021, 07:21 AM)StroudCrowd1 Wrote:

(04-29-2021, 07:14 AM)The Real Marty Wrote: No.  Currently, if you sold the hypothetical home, you would pay capital gains tax on the sale price minus the value of the house when you inherited it.  Under the new tax proposal, capital gains tax would be assessed when you inherit the house, and calculated based on the value at the time of inheritance minus the price paid for it many years ago when the parent bought it.  

Currently, appraisal of all assets at the time of the inheritance is strongly recommended, so if you sell something, you calculate your capital gain based on the stepped up basis, that is, the value when you inherited it.  

Example: your parent bought the house 30 years ago for $100,000.  When you inherit it, you get an appraisal, and the value is appraised at $500,000.  A year later, you sell the house for  $510,000.  Under current law, you would pay capital gains tax when you sell the house, and the capital gain that would be taxed would be $10,000.  Under the proposed law, you would pay capital gains tax when you inherit the house, and the capital gain to be taxed would be $400,000.

While insane, there is something poetic about a young Biden voter getting completely hosed by his own doing when their parents pass away..