On the flip side of the equation, Congress sent the President the biggest tax cut in history last year (which included lots of RE tax savings and elimination of the death tax on estates). Of course Mr. Intern chaser vetoed the bill.
I tend to think that most Republicans in Congress, who will hopefully continue in power, will eventually give us a tax break. Everytime I look at my paycheck I stop and think “Why in the world do they take 35% of MY money and send it to these morons on welfare (i.e. social security) or to some no-names in Bosnia (or Somalia, Israel, Kosovo, etc.)? Let Congress and the Prez spend their own paychecks on it and leave ours alone.” Oh well, maybe when George W. is in office and we get the Republican majority both in Congress and the White House the taxpayers will actually be able to keep a decent amount of their own money. Ok, off my soapbox.
For those who are following potential federal legislation which may negatively impact your estate planning, watch the progress of H.R. 1390.
H.R. 1390, the Income Tax Fairness Act of 1999 (introduced in the House), if enacted, will repeal the increase in basis of property acquired from a decedent. Instead of inheriting property at its “stepped up” basis, decedent’s basis in the property will carry over to the heirs.
Another provision of this bill will increase the recovery period of nonresidential real property from 39 years to 100 years.
I suspect that this bill will remain in committee and is not likely to be presented to the President during an election year. However, during the next 25 (or so) years, we will experience the greatest transfer of wealth this country has ever seen. Don’t expect Congress to sit by quietly and let this go untaxed.