Tag Archive: Obama Budget Creates Second Death Tax

Obama Budget Creates Second Death Tax

Obama Budget Creates Second Death Tax The Obama budget calls for a stealth increase in the death tax rate from 40% to nearly 60%. Here’s how it works: Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent’s original basis. Almost always, the fair market value is higher. Under the Obama proposal, when you inherit an asset your basis will simply be the decedent’s original basis. Example: Dad buys a house for $10,000. He dies and leaves it to you. The… View Article