Kamala Harris vows Biden will repeal Trump tax cuts ‘on day one’
Democrat VP nominee adds that Biden will not raise taxes on Americans making more than $400,000 per year.
Concerned wealthy Americans are looking to adjust their estate planning strategies ahead of the November election, amid concerns that a Joe Biden victory could upend current tax law.
Jonathan Miller, the CEO of Manhattan-based real estate appraiser Miller Samuel, told Fox News that his office has seen inquiries increase threefold.
“Tax time for us tends to be skewed towards the second half of the year and this year we’ve seen about triple the inquiries as we typically do,” Miller said, adding that these tend to be high-end clients.
JOE BIDEN'S 2020 TAX PLAN: THE KEY POINTS
The Tax Cuts and Jobs Acts essentially doubled the basic exclusion amount to $11.58 million in 2020 ($23.16 million if married). Assets exceeding that threshold are subject to a rate as high as 40%.
Biden’s plan would undo that change, meaning people would be able to transfer fewer assets without triggering the tax. Biden would also do away with step-up in basis, which means unrealized capital gains would be taxed at death.
Geoffrey Weinstein, special counsel in the Tax, Trusts & Estates Department of Cole Schotz, told Fox News that his practice is seeing also seeing "a huge uptick" in estate tax planning and gifting as a potential clawback looms.
“The current law provides the estate tax … returns to $5 million per person (adjusted for inflation) in 2026,” Weinstein said. “The exemption could be reduced earlier especially if Biden wins the election and the Senate flips to being Democratically controlled.”
There are several ways advisers can help clients adapt their strategies to account for potential changes, including taking advantage of current rates, transferring assets at a discounted value and addressing asset control questions, Weinstein noted.
If Biden were to win the election, a change in tax policy could be retroactive to the beginning of 2021, which is why some individuals are seeking to have these changes in place by year’s end, Weinstein said.
Trump’s estate tax exemption provision is currently set to sunset in 2025, along with several other measures of the Tax Cuts and Jobs Act.
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