I had heard that if the Estate Tax is eliminated, that the stepped up value of stocks that heirs now enjoy would be eliminated.Does anyone know the details of the current measure underway in Congress ?Instant Analysis: If the above is true, this measure should benefit the rich heirs more than the average heirs, since the average heir now doesn't have any estate taxes due to the already increasing exclusion. The average heir would also have the stepped up value of inherited stock. If the estate tax is eliminated with this measure and the stepped up value of stocks is eliminated then average heir actually has to pay more if the stock is ever sold !
for buy2win, who quite reasonably asks"Does anyone know the details of the current measure underway in Congress ?" about repealing death taxes.http://www.taxplanet.com/legislation/estatehouserpt/estatehouserpt.html is titled<blockquote>Estate Tax RepealExplanation of "Death Tax Elimination Act of 2000"Excerpts from House Committee Report 106-651June 6, 2000 DEATH TAX ELIMINATION ACT OF 2000</blockquote>It says, in part,<blockquote>Beginning in 2010, the estate, gift, and generation-skipping transfer taxes are repealed. After repeal, the basis of assets received from a decedent generally will be the basis of the decedent (i.e., carryover basis). However, $1.3 million of transfers from decedents to any beneficiaries will receive a step up in basis. An additional $3 million of transfers from decedents to surviving spouses also will receive a step up in basis. For these purposes, the executor will elect which assets receive a step up in basis. The $1.3 million and $3 million amounts are adjusted annually for inflation incurring after December 31, 2010.</blockquote>So, according to this, the step-up in basis is eliminated except for estates under $1.3 million and estates under $4.3 million going to a surviving spouse. It seems that the House bill anticipated the objection that smaller estates would be hurt by this tax repeal, and inserted this exception precisely to avoid the problem.Chips, who thinks that there will be no estate tax repeal unless or until the Republicans control both the Presidency and Congress -- and even in that unlikely event, the Democrats in the Senate will be odds-on favorites to filibuster the tax repeal to death
Trust the Republicians to look out for their friends, i.e. the "Very Rich". I know that this was in the bill, but I have not really paid much attention since Bill and/or Gore will veto it if it is passed.
Worse yet, if passed, it screws the smaller states. Ours, for example, receives $15M on a $100M estate. If this death/estate tax was repealed, we'd not receive dime one.
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