What happens to capital gains under the Inheritance Tax Repeal law?

[xray s]

Last I heard, under current law, in 2010 the inheritence tax is scheduled to disappear, but the "capital gain step up" feature of the current law was also going to disappear.

In other words, 2010 was going to be a nightmare for executors, a bonanza for lawyers and accountants, an possibly result in a net tax increase on smaller estates, which would be liable for capital gains tax.

Does anyone know how the bill just passed by congress treats capital gains in an estate, and its impact on estates under $3.5 million (that was the Democratic estate tax compromise that was rejected)

[Name removed]

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[Egalitariat]

2. Due when they sell the assets? Or when they inherit them?****

nm

[GR]

3. That's My Understanding Too...

It is going to be a nightmare to calculate but without it...the repeal will be even more of a budget destroyer..

[Name removed]

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[xray s]

6. The current law allows capital gain step up, up to the excluded cap.

For smaller estates, that lifts a great burdon on trying to reconstruct original costs, costs of improvements etc.

They are really opening up a pandoras box.

[Robert Oak]

7. Repuke ver. sounds like a loophole to me

[xray s]

5. This website explains it

My question is, will millions of Americans now have to worry about figuring out capital gains on the house they inherited from grandma or granpa's stocks?

http://recenter.tamu.edu/tgrande/vol9-2/1558.html

[Warpy]

8. It looks like they just substituted a lower capital gains tax

for the higher inheritance tax. This stinks for a number of reasons, not the least of which is that under the old law, something like $1.3 million was tax free. Now, every dime of that will have to be scrutinized for capital gains and tax paid on it. As with all other GOP bills, it represents a huge TAX INCREASE on the poorer, and a net TAX CUT on the rich.

Dirty bastards.