Did you know Biden wants to get rid of something called “stepped up basis”??? How does this affect you!? When your parents pass and leave you the family house normally you would inherit that property at what it is worth today. If you were to sell that house you would only pay taxes on the gain from what it is worth today and what it sells for. If Biden does away with “stepped up basis” you will inherit the property for what your parents paid for the property. If you decide to sell you will pay taxes on the difference between the original purchase price and what it sells for today. Our kids need to be aware.<\/p>\n
Here is what this looks like!<\/p>\n
Current Policy<\/strong><\/p>\n Inherited House at Current Value – $200,000 Biden Policy<\/strong><\/p>\n Inherited House at original purchase price – $40,000 If your parent were to have sold this property prior to passing they would have paid no taxes because it was their primary residence.<\/p>\n So much for helping the middle class get ahead.<\/p>\n ***My educated guess would be that at least 95% of Americans don\u2019t even know Biden has proposed this. We are talking tens of thousands of more tax dollars for the average sold after inheritance! Wow, google \u201cBiden stepped up basis\u201d and educate yourself because this is a biggie!<\/p>\n","protected":false},"excerpt":{"rendered":" Did you know Biden wants to get rid of something called “stepped up basis”??? How does this affect you!? When your parents pass and leave you the family house normally you would inherit that property at what it is worth today. If you were to sell that house you would only pay taxes on the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-1142","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/posts\/1142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/comments?post=1142"}],"version-history":[{"count":1,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/posts\/1142\/revisions"}],"predecessor-version":[{"id":1143,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/posts\/1142\/revisions\/1143"}],"wp:attachment":[{"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/media?parent=1142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/categories?post=1142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carrollcountyrepublicans.org\/carroll\/wp-json\/wp\/v2\/tags?post=1142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nSells for $205,000
\nTaxable income = $5000
\nTaxes Due – 20% of $5000 = $1000
\nProfit to you = $204,000<\/p>\n
\nSells for $205,000
\nTaxable income = $165,000
\nTaxes Due – 20% of $165,000 = $33,000
\nProfit to you = $172,000<\/p>\n