Biden’s Tax On Large Capital Gains At Death Will Catch A Few With Annual Incomes Of Less than $400,000

Link: https://www.thewealthadvisor.com/article/bidens-tax-large-capital-gains-death-will-catch-few-annual-incomes-less-400000

Excerpt:

For a relatively small number of decedents, this plan could run headlong into Biden’s promise to not raise taxes on those with incomes below $400,000. Of course, the vast majority of decedents will have unrealized gains of far less than $1 million. Indeed, most will leave entire estates far below that threshold. Among people over 70, about 83 percent live in a household with total net worth of less than $1 million.

But some people with large unrealized gains will have been living on relatively low incomes. Imagine someone who is retired and living on Social Security, a modest pension, and some savings. But they still are holding that Microsoft stock they bought in 1987.  

Author(s): Howard Gleckman

Publication Date: 31 May 2021

Publication Site: The Wealth Advisor