Joe Biden's New Unrealized Gain Transfer Tax On Your Inheritance Unveiled!

Joe Biden's New Unrealized Gain Transfer Tax On Your Inheritance Unveiled!
#joebiden #unrealizedgain #estate #Tax #Biden

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President Biden, in the recently-released Green Book, has proposed far-reaching changes to the taxation of capital gains and the treatment of property that is gifted or is transferred at death, including taxing capital gains at ordinary income rates and treating the receipt of assets because of death as a realization event. Details of the proposals are below.

👉https://tax.thomsonreuters.com/news/details-of-president-bidens-proposed-reformation-of-capital-gains-and-transfer-at-death-rules/

👉https://www.jdsupra.com/legalnews/the-biden-administration-s-revenue-7618184/

⌚ Time Stamps so you can jump to any point in the video
►1:45 - How inheritance is changing under Biden's plan
►3:26 - Unrealized gain transfer tax - Full example of how I expect this to work
►9:15 How rich do you have to be to be affected by the unrealized gain tax
►11:00 Exclusions to the unrealized gain transfer tax

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Reasons for change.
The Green Book says that preferential tax rates on long-term capital gains and qualified dividends disproportionately benefit high-income taxpayers and provide many high-income taxpayers with a lower tax rate than many low- and middle-income taxpayers. The rate disparity between ordinary income taxes and capital gains and dividends taxes also encourages economically wasteful efforts to convert labor income into capital income as a tax avoidance strategy.

Treat transfers of appreciated property by gift or on death as realization events. Under the proposal, the donor or deceased owner of an appreciated asset would realize a capital gain at the time of the transfer.

The per-person exclusion would be indexed for inflation after 2022 and would be portable to the decedent’s surviving spouse under the same rules that apply to portability for estate and gift tax purposes (making the exclusion effectively $2 million per married couple).

• Transfers to charity. Transfers by a decedent to a U.S. spouse or to charity would carry over the basis of the decedent. Capital gain would not be recognized until the surviving spouse disposes of the asset or dies, and appreciated property transferred to charity would not generate a taxable capital gain. The transfer of appreciated assets to a split-interest trust would generate a taxable capital gain, with an exclusion allowed for the charity’s share of the gain based on the charity’s share of the value transferred as determined for gift or estate tax purposes.

• Tangible property and principal residence. The proposal would exclude from recognition any gain on tangible personal property such as household furnishings and personal effects (excluding collectibles). The $250,000 per-person exclusion under current law for capital gain on a principal residence would apply to all residences and would be portable to the decedent’s surviving spouse, making the exclusion effectively $500,000 per couple.

• Small business stock. The exclusion under current law for capital gain on certain small business stock under Code Sec. 1202 would also apply.

• New $1 million exclusion. In addition to the above exclusions, the proposal would allow a $1 million per-person exclusion from recognition of other unrealized capital gains on property transferred by gift or held at death.

Видео Joe Biden's New Unrealized Gain Transfer Tax On Your Inheritance Unveiled! канала Money and Life TV