If Congress gets it way, the middle class is about to experience the greatest tax grab since the creation of income taxes in 1913.
Now the family home is in jeopardy of being confiscated by the IRS.
You might know about estate taxes and how they affect the richest Americans. It applies to the value of estates in excess of 5 millions dollars, and 10 million dollars if you are married. President Trump’s tax proposal eliminates that.
However, there is another NEW tax to take it’s place.
They are planning to tax your home when you die.
Under current law, when there is a gain in the value of your home at your death, heirs can sell the home income tax-free. This allows your family to inherit 100 percent of the value of the home.
If the GOP has their way, all of that is going to change.
With the proposed New Death Tax, your heirs will have to pay taxes on the inherited gain in the property regardless of whether they sell or keep the property.
So if you bought your home for $100,000 years ago and today it’s worth $500,000, taxes would be due on the $400,000.
This will be a shocking revelation for American families counting on passing that wealth to loved ones. It’s not just about the family home. Even the value of farms that have been held for generations could be affected.
The details of the New Death Tax are being worked out now.
The fact that Congress is desperate for tax revenue is an understatement. They are also looking carefully at how 401k and IRA plans get taxed.
More to come from TheTaxPatriot.com.