Tuesday, December 29, 2009
A Different Perspective on the 2010 Estate Tax Repeal
The following regarding the federal estate tax is taken from a New York Times editorial entitled An Estate Tax Mess, at A26, Dec. 27, 2009:
[U]nder today’s law, when heirs sell inherited property, no capital gains tax is due on the increase in value that occurred during the lifetime of the original owner.But when the estate tax is repealed in 2010, the capital gains tax will kick in once the gains in an estate exceed $1.3 million. There’s an extra $3 million exemption for assets left to a spouse.
The bottom line is this: there will be many more losers than winners under estate-tax repeal, and the losers will be among Americans who are farther down the wealth ladder.
https://lawprofessors.typepad.com/trusts_estates_prof/2009/12/a-different-perspective-on-the-2010-estate-tax-repeal.html