Quote:
Originally Posted by Shazam
I just knew somebody would chime in about the cap gains rate. I'm sorry for not explicitly stating it. Because holy crap I guess I should put in every ####ing qualifier when it comes to tax rates.
The point being, there is no special treatment to the assets because someone died. It's a deemed disposition.
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It's not the lack of qualifiers; it's that you suggested that estates are taxed anywhere near 48%. Primary residences aren't taxed, cash isn't taxed, and assets are only taxed on their unrealized gains. The effective rate is near zero for most estates.
Having just gone through this with a relative, on a 3M estate (including a secondary property and a bunch of equities), the total final tax bill from deemed dispositions was about $80K, which is an effective rate of about 2.5%.