Tuesday, December 22, 2009

More on the Federal Estate Tax

Watching and reading about Congress' action related to the estate tax, I came across an interesting tidbit in the NY Times:

There is yet another wrinkle. When they scheduled the demise of the estate tax for 2009, the authors of the 2001 tax measure replaced it with a capital gains tax of 15 percent on inherited property that is later sold.

The threshold for being subject to those taxes is set lower, with the first $1.3 million in capital gains exempted for general heirs and $3 million for spouses. Democrats argue that thousands of estates that would not have been subject to taxes under the current law could get hit in 2010 even as those at the higher end of inheritance scale escape the 45 percent tax bite.

Taxes are a certainty, but how the play out appears not to be. Stay tuned for more updates.

1 comment:

CJ said...

When you pay 15% capital gains, is the basis the value at the time you inherited the property or at the time the property was purchased.