Many Estate Planning Attorneys, Financial Planners, and Accountants took note of the tax changes that President Obama recently proposed regarding capital gains taxes. If these changes took place, people inheriting real estate could suffer great tax consequences for the property they inherit.
This tax change would be most detrimental to people who are in the middle-income to high-income range, but that income range represents a lot of people in America. That being the case, the proposed tax increase could potentially cost millions of dollars to tax payers who are the beneficiaries of real estate or other property, which is something that planners will have to take into consideration when advising their clients.
Because the tax changes that Obama proposed have to go through a majority Republican Congress before they are approved, we most likely won’t see these changes implemented in this presidential term. However, Obama’s tax proposals have made us all more aware that there may be serious changes in the future for heirs of inherited property.