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I think it's possible that eliminating the basis step up could change a lot of incentives to do this sort of maneuver, yes. For folks this wealthy, I doubt the
by heleninboodler 4y ago
I think it's possible that eliminating the basis step up could change a lot of incentives to do this sort of maneuver, yes.
For folks this wealthy, I doubt the difference in tax brackets make much of a difference. What's classified as income is probably such a small portion of what they get taxed on that it just doesn't matter.
- dataflow 4y agoSorry, to clarify, I meant the rate of the top tax bracket. Not the threshold. I edited the comment to clarify.
- heleninboodler 4y agoStill, if you make $10MM/year in cap gains and what qualifies as "income" is in the hundreds of thousands, do you care what the top rate is?
- dataflow 4y agoDepends what kind of capital gains you have. I have no idea what they have, but short-term capital gains are treated as ordinary income. And obviously the logic would be the same for if/when they change the long-term capital gains tax rates.