Flipper/Rehabber · Member since 2018 · 102 posts · 103 votes
It sounds like capital gains taxes will increase under the Biden Administration. I'm curious to see what people's thoughts are in regards to protecting assets from Capital games. What types of things are you doing or recommending others do to protect assets from increased taxes?
Scenario: I just spoke with a friend of mine that is concerned that capital gains taxes will take a lot of The Inheritance that's him and his wife are set to receive. Most notably from the sell of a home that belongs to his mother-in-law. What thoughts and ideas do you guys have for him? Also does anybody have any recommendations for tax specialist that I can point him to?
I'm not going to use the terminology properly but I imagine some form of the section 121 gain exclusion on the sale of a primary residence would apply to descendants if the inheritance exclusion goes away.
The Biden plan only increases capital gains on taxpayers with income in excess of $1 million. These taxpayers will pay ~50% marginal income taxes on their capital gains.
If its actually inherited property (passes through the tax estate) then it currently receives a step up in basis so there would be no gain for any pre-death appreciation.