President Biden wants to eliminate a longtime tax break on inherited property and, if successful, the plan could cost some families tens of thousands of dollars. Democrats have bold plans for free health care, free college and open borders. Guess who’s going to pay for all this “free” stuff? You!
Biden wants to take MORE of your money
The president has stated his support for eliminating the stepped-up basis tax rule, and if that rule is eliminated, it would cost some families tens of thousands of dollars in additional taxes paid on capital gains.
The Tax Policy Center says stepped-up basis allows someone who inherits real estate to only pay taxes on the property’s increased value from the time it was inherited – not from the time it was originally purchased.
“Under current law, capital gains generally are only subject to tax when they are realized upon the sale or exchange of the asset. If the assets are held until death, the gains are not subject to income tax, because the basis is ‘stepped up’ to the fair market value at the time of death,” explained Jessica Jeane, director of public policy & strategic planning at the National Association of Accountants.
This is @JoeBiden. He’s talking at a his rally. He admits that he intends to raise your taxes. Look at the face of the people sitting there. FYI, this is not Russian disinformation, this is #JoeBiden. pic.twitter.com/ncBcRXfeCQ
— Bernard B. Kerik (@BernardKerik) October 29, 2020
Democrat’s solution is always higher taxes
If you inherit a property, Jeane says that can save you a lot of money. Or, put another way, getting rid of the stepped-up basis could hit middle-class homeowners pretty hard.
“Without the step-up in basis, the capital gains generated upon the sale of inherited assets would be much higher,” Jeane said.
President Biden has made it clear he supports getting rid of the inheritance tax break by eliminating the step-up rule.
In October 2019, then-candidate Biden proposed providing two years of free community college to all students. His campaign said the plan would be funded, in part, by eliminating the stepped-up basis rule, according to a report by ABC News.
And last summer, CNBC reported that Biden pledged at a virtual fundraising event to roll back most of President Trump’s multitrillion-dollar tax cuts to control the national deficit. At the time, he said “a lot of you may not like that, but I’m going to close loopholes like capital gains and stepped-up basis.”
— 𝕞𝕖𝕝𝕚𝕤𝕤𝕒 🙈🙉🙊 (@my3monkees) October 4, 2020