Repeal of the federal estate & gift taxes and generation-skipping taxes. The current tax rate is 40% for inheritance and/or gifts over $5.45M
The cost basis of inherited assets would continue to be “stepped up” to their value at the time of death.
Appreciated property could escape individual level taxation entirely if held until death, providing an even stronger incentive to hold than under current law.
Capital gain tax (15/20%) on appreciation subject to a $10M exemption.
To be continued as new information emerge from The White House and/or Congress.
I created this blog to help understand certain basic aspects of proposed U.S. tax reforms. Of course, the discussion between Congress and the White House is ongoing and many things could change before the propositions are finalized into laws.
Please do not hesitate to contact me should you have any question