How Biden May Change Inherited Asset Sales & More

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Like his predecessor, whose most significant piece of legislation heavily affected taxes, President Joe Biden has a number of tax rule changes he'd like to make, preferably before the 2022 elections. In part three of his series on President Biden's proposed changes to tax laws, Julian Block discusses what changes might be made to sales of inherited assets, among other topics.

Jul 22nd 2021
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Just joining us? We invite you to go back to part one. It focused on the tax rules for profits from sales of personal residences.

Part two discussed President Biden’s proposal for long-term capital gains. He hopes Congress will replace the present top rate of 20 percent for profits from sales of assets owned for more than one year with a new one of 39.6 percent––just short of double the current one.

Ahead in part three: More on his agenda, including how he targets sales of inherited assets.

Mr. Biden wants Congress to curtail long-standing rules for “step-ups” that benefit individuals who sell inherited assets that have increased in value––homes, stocks, real estate and works of art, to cite some common examples.

In tax lingo, the basis (the starting point for measuring taxable gains or losses) for inherited assets automatically steps up from their original basis (cost, in most instances) to their value as of the date of death of the owner. Put lots more plainly, it’s as if an inheritor had bought the asset from the owner that day.

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By JEROME K PORTER
Jul 23rd 2021 19:28

The preferential rate for long-term capital gains has often been justified by the fact that a significant portion of any currently recognized gains arises from the continual devaluation of the dollar. Biden's preferred fiscal policies will "if anything" exacerbate that trend. Piling higher taxes on the fictitious gains arising from the greater devaluation of the currency is the height of inequitable taxation.

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Replying to JEROME K PORTER:
Julian
By Julian Block
Jul 24th 2021 15:45

Mr. Porter: I always like to hear from the folks who read my columns.
Regrettably, however, our views differ.
I have never experienced discomfort when I deposit fictitious gains in my bank account. Rather, there is a gleam in my eyes, a smile on my lips, a spring to my steps, and I twirl my cane, as I approach the entrance to the bank. I take my cues from Dr. Pangloss; it is the best of all possible worlds.

Yours cordially, Julian Block

I

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avatar
By JEROME K PORTER
Jul 23rd 2021 19:28

The preferential rate for long-term capital gains has often been justified by the fact that a significant portion of any currently recognized gains arises from the continual devaluation of the dollar. Biden's preferred fiscal policies will "if anything" exacerbate that trend. Piling higher taxes on the fictitious gains arising from the greater devaluation of the currency is the height of inequitable taxation.

Thanks (0)
avatar
By JEROME K PORTER
Jul 23rd 2021 19:28

The preferential rate for long-term capital gains has often been justified by the fact that a significant portion of any currently recognized gains arises from the continual devaluation of the dollar. Biden's preferred fiscal policies will "if anything" exacerbate that trend. Piling higher taxes on the fictitious gains arising from the greater devaluation of the currency is the height of inequitable taxation.

Thanks (0)
avatar
By g.heiseycpa
Aug 2nd 2021 16:48

Dumbass!!!!!!!!

"First, from troglodytes who preternaturally rail against any and all tax increases. Second, from curmudgeons who argue that if the proposal becomes law, there’ll be dire consequences, such as an existential threat to the American way of life and reduction of the World Series to three games."

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Julian
By Julian Block
Aug 3rd 2021 04:21

Dear Mr. or Ms. Helsey:
It would help me provide a reply if you cxpand on your one-word comment. To whom are you referring? To me or to someone else?
I look foward to your next comment.
Cordially yours, Julian Block

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