Quote:
Originally Posted by bizaro86
The US has inheritance taxes but also a gross up of adjusted cost basis at death. Our system is likely fairer and also more difficult to game, as the deemed disposition at death is hard to avoid.
If you wanted to raise money from a wealthy type tax you should drop the capital gains exemption on a primary residence (or maybe limit it to $1MM in lifetime gains or something like that)
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Not that its not a plan, but that is a gigantic can of worms.
Changing the rules mid-way through the game is problematic enough, especially as people have been banking on the rules staying the same. But when the Principal Residence Exemption...I dont think anyone really forecast property values and shortages coming to this point.
This is not what it was designed for.