We do not know what amount Biden will advocate for as his campaign website did not actually state his proposal for a new estate tax exemption amount. • Estate tax rate change – The current estate tax rate of 40% could increase. If the heirs turn around and sell the asset right away there is no gain on the sale and therefore no capital gains tax to pay. However, an elimination of the step-up in basis at death would mean that the heirs would have to pay capital gains tax on the inherited property. • Potential increase in capital gains rate – Biden’s proposed tax plan recommends increasing the long-term capital gains tax rate to the level of ordinary oncome for those people making over $1 million annually.

Source: Forbes January 27, 2021 16:51 UTC