In his proposed “American Families Plan,” President Biden doesn’t propose the estate tax increase he campaigned on. However, the proposal includes elimination of the step-up in basis for many families. The first $1 million in gain can pass tax-free from a deceased person ($2.5 million for a couple). So, even you don’t have a taxable estate, your children may still lose a significant portion of their inheritance to capital gain tax. $1 million and $2.5 million are not huge values when it comes to farmland and many other assets.
The proposal includes several other changes, but elimination of the step-up
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