It will destroy whatever is left of the middle class. So if you inherit the house your parents live in for 50 years? You will have to pay the capital gains tax on the increase in value of that home over the fifty year stretch. If you don’t know the cost basis, you have to assume it is zero and pay tax on the whole sale.
Bingo. So now dig threw the paperwork from 1960 if it still exist on the purchase, and then look for all the bills of major improvements if they exist, the porch, new boiler, etc etc etc. What a bleeping nightmare.
The problem with the deceased is not the Wills and Trust, it is the emotions of the declutting and sale etc of their worldly pocessions. It is draining and mindboggling and the only one with the balls to talk about it has been Clark Howard. Been their done that. Now team O'Biden will only add workload to your overworked emotional system, how is that for a pile of suckage...
I assume it is not corrected for inflation... if not, you are actually paying capital gains on inflation itself....
it’s really hard to not hate these people.
How do you not know the cost basis of a home that’s been inherited? How do you even have the paperwork to document an inheritance if that sort of thing isn’t known? There will be mortgages, a title filed in the applicable hall of records, and any other paper trails that would be used to establish this.
IF the first $5.5 million of inheritance (for single person-—$11 million for married couple) is NOT taxable...how can they trap you over value of house?
The estate tax exemption is currently over $11 million. If you were to cut it in half it would still be felt by maybe 2% of beneficiaries. This has no impact on the success or failure of the middle class.
It’s even worse. Much of that capital gain is illusory due to inflation. You are largely being taxed on phantom “gains” caused by government induced inflation.