2010: Cheapest Year to Die?

March 17, 2010 RSS Feed Print
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After 2010, the rules change again, this time reverting to previously higher levels of tax. Next year, barring any new laws, the maximum estate-tax rate will go up to 55 percent, and estates over $1 million will be taxed. That makes 2011 one of the most expensive times to die.

Clarified on 3/17/2010: An earlier version of this story, which previously suggested that all assets over $1.3 million were subject to the capital gains tax, has been clarified.

Tags:
estate taxes,
retirement,
federal taxes

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There is no "capital gains tax". What there is in 2010 is no "step up" in income tax basis on capital assets, such as real estate and stocks, on a death beyond $1,300,000. There is an additional step up on the property going to a spouse. The tax, income tax, on any inherent capital gain beyond the step up is only triggered if the asset in sold in a taxable transaction.

Kevin Staker

Kevin Staker of CA 3:10PM March 17, 2010

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