Now that we have a new administration and slim Democratic majorities in both chambers of Congress, there are some shifting taxation priorities. Of course, there is formidable resistance from the other side of the aisle. There are those clamoring for more taxes on the wealthy and proposals that would expand federal transfer taxes. In this post, we will look at potential changes to the federal estate tax exclusion and the step-up in basis. Potential Exclusion Reduction The federal estate tax … [Read more...] about New Majority May Push for Transfer Tax Expansion
step-up in basis
Capital gains tax is payable any time you realize a gain on the sale or transfer of an asset. This is a fancy way of saying you will pay taxes if you sell an asset that has gone up in value while you owned it. There are two types of capital gains taxes. Long-term capital gains are gains realized on the transfer of an asset you owned for more than a year. Short-term capital gains are due on profits from the sale of assets you held less than a year. Short-term gains are taxed at your … [Read more...] about Do I Pay Capital Gains Taxes on Inherited Assets?