Posted on 06/12/2019 9:37:24 AM PDT by TIElniff
I'm surprised that there has been no (or little) comment about Biden's suggestion to eliminate the "stepped-up basis" on capital gains at the death of the investor. What gives?
Why?
Its tied into his “cure cancer” comment that I made an extremely unique observation about in an earlier thread.
What does he want to eliminate?
Can you give me some guidance? I did a search for your name in relation to Biden’s cancer comment, but didn’t find anything related to stepped-up basis. (Although, I guess, eliminating stepped-up basis and then killing everyone who has cancer would generate a lot of capital gain taxes!). So, guide me to your previous comment: title and number, please, if you will!
You can actually search anyones comments pretty easy with FR’s built-in searching functions.
“What does he want to eliminate?”
Let’s say your Mom bought Acme at $5 in 1950. On the day of her death it was selling for $355. You inherit the stock and your stepped up basis is $355. Say the price drops to $300 on the day you sell it. You lost $55 per share. But if your Mom had lived and sold it at $300 per share she pays a capital gain of $295 per share. (At least that’s my understanding.)
This is about the ONLY tax break we get. We've been in our house 36 years and have a big capital gain; this tax break is the only reason we don't sell the house. I'd MUCH prefer to leave the money to our kids than to the rotten, corrupt and GD government.
Adding insult to injury, that bastard Biden would take OUR gain and use it to give "free" education to kids who have zero interest in being in college:
At teachers' union town hall, Joe Biden releases public education plan to raise teacher pay and invest in schools
By Christopher Donato and Molly Nagle, May 28, 2019, ABC News“I believe we should have free community college for every single person qualified in America," he said during a question and answer period after the event. "And by the way, it costs a lot of money. It costs $6 billion”
Biden said that he would pay for this by eliminating ‘stepped up basis,’—a tax loophole for capital gains tax. This is not a new policy for the former vice president—he has spoken about eliminating this to provide access to free community college other speeches as well.
I suspect it isn't getting discussed because 1) the press is keeping it largely under wraps and 2) most Americans think it's a tax break for the uber-wealthy and they subscribe to "Yeah! Stick it to them!"
Most Americans probably do not know that assets are stepped up at the death of the investor and it's the only way to keep the money out of the money-grubbing goverment's hands.
What a scum sucking lying “senator from MBNA” (his old nickname.. from Delaware the capital of credit card usury and appalling money tricksters— and from whom he got and gets lots of political money, as their huckster).
The policy/law by State and also by Federal laws— of stepping up (increasing) the cost basis of long term held assets (such as in FL, the Homestead exempted longheld home of retirees, seniors) is increased by a formula or fixed figure... to compensate the massive capital gains tax that would ensue. Primary residence (homestead) is “stepped up” to current values- example purchase a home in 1950 for 2000, and in 2019 it is appraised at 350K or higher— imagine the cap gains tax this would generate— were it not for this “step up”.
Greedy conniving lying socialist biden— is after a massive amount of forced estate taxes— from real estate, stocks, etc. Something his corporatist socialist pals would love— and especially the career ripoff gubmint agencies and their ever increasing needs for budgets to spend spend spend.
Appalling lying bastard. Not long for it, mentally, morally and a whole lot else.
As far as I know, the "step up" in the cost basis of assets for capital gains tax purposes only applies to assets that wouldn't be subject to estate taxes anyway.
If you bought 1,000 shares of Company X back in 1980 for $5 per share, you have a cost basis of $5,000 for that asset.
If the stock is now worth $200 per share, your asset is worth $200,000. If you sold it today, you'd pay a capital gains tax based on a gain of $195,000.
But if you died today and these shares were left to your family, there wouldn't be any estate tax on the inheritance -- regardless of whether the IRS valued it as a $5,000 asset or a $200,000 asset. That's because the estate tax exemption for 2019 is more than $11 million.
The purpose of the "stepped up basis" rule is to establish the cost basis of the asset to its value at the exact time the actual owner of the asset acquired it. If you inherited $200,000 worth of stock in 2019 that had been purchased in 1980 for $5,000, you can't be forced to use a $5,000 cost basis for capital gains tax purposes when you sell the asset later ... because that would mean you did NOT get the estate tax exemption that you were entitled to.
Gosh, it's almost as if Biden is counting on and getting the unqualified support of the partisan media shills.
You really want to make everyone work to research what you said once on some other thread, instead of simply posting it again here, as requested? Why be an elitist douche about it?
He wrote, “One way to cure cancer is to execute everyone who has cancer.” That’s what he thinks is an “extremely unique observation”, and deserving of others having to chase down his posts.... basic narcissist, and not terribly creative or unique.
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