Harris hasn’t talked specifically about this, but there’s a provision in Biden’s budget that would change the way inherited assets are taxed.
Currently, you don’t have to pay a capital gains tax when you inherit a home, stocks or a business that have increased in value, thanks to a provision called “step-up in basis.”
But the Biden proposal would make some wealthy people pay that tax when an appreciated asset is passed on after death. The argument is that the step-up in basis primarily benefits the rich, whose wealth is more often tied up in real estate and stocks. It currently allows some wealth to avoid ever being taxed as it’s passed down from one family member to another.
Biden’s proposed change would only apply to inheritances where the appreciated value is worth more than $5 million for individuals or more than $10 million for married couples. Assets donated to charity would also be excluded from the tax.
