tuscl

Will the Harris increase on capital gains tax be based on salary income or total

BirdDropping
The current capital gains tax is 20%.
The Harris plan will tax any capital gains at 28% for those whose income is over $1M.
If my income is $100k and I inherit $900k, does that put me now into the $1M income bracket and I'm taxed at 28% or is the 28% based on the income that doesn't include the inheritance/capital gains?

18 comments

  • twentyfive
    •
    a day ago
    Capital gains taxes would not be assessed on an inheritance, only on the profit from the sale of an asset that you’ve owned.
    If you inherited property the property would not be subject to capital gains only the profit from selling it at a value which is greater than at the time you inherited it.
  • longb
    •
    a day ago
    No if you inherit anything, there are no capital gains, all those are wiped out. So if you inherit a house that was purchased for $100 and now is worth $1 million that $900 thousand in gains disappears. Its called stepped up valuation. The only case you would be taxed is if it is an IRA or 401K that was never taxed
  • shailynn
    •
    a day ago
    Ahem, dear peasant, the minimum salary you need to be able to post on TUSCL is 350k. I did not make the rules I just comment on them.

    Typical TUSCL PL though, making over 350k a year but then flipping out over a $7 valet charge, or actually getting into a fist fight with a stripper over who gets to take the breadsticks home from Olive Garden.
  • Puddy Tat
    •
    a day ago
    "getting into a fist fight with a stripper over who gets to take the breadsticks home from Olive Garden"

    LOL!
  • rickmacrodong
    •
    a day ago
    The tax isn’t due until you actually sell the property. But do they actually base it off the value when you inherited it, not the value of what it was last bought/sold for? For instance your dad buys a stock for $10, it goes up to $20, he gives it to you while it’s at $20, and you decide to sell it 10 years later and the price is still $20. Do you pay taxes on the gains made from $10 to $20?
  • ilbbaicnl
    •
    a day ago
    $1M is still below the estate tax exemption, even if the sunset happens: https://www.fidelity.com/learning-center…
  • longb
    •
    a day ago
    the base price is the price when you inherit it. Not when it was purchased. They do try to make it up with estate taxes but if the amount is less than 13 million there are no estate taxes.
  • rickthelion
    •
    a day ago
    Far be it from this rick to point out the obvious when y’all are engaging in an erudite discussion of tax policy, but my lion-y common sense compels me to point out that the OP should worry about the whole ejaculating blood thing before he worries about his tax burden.

    Remember the demented shit the OP posted about hiring alligator escorts? This lion remembers because it was something he posted yesterday: https://tuscl.net/discussion/86106
  • ilbbaicnl
    •
    a day ago
    Damn right RTL. Whatever your feelings about us damn dirty apes, we gotta pull together and show some mammal solidarity to stop reptiles from breaking into the escort business!
  • grrlgonebad
    •
    20 hours ago
    For a $900K inheritance, I would push grandma down the stairs... twice if I had to...
  • mogul1985
    •
    9 hours ago
    I was going to ask my CPA today, timely, as we are nearing the end of the year.

    I did inherit some stock, brokerage, not IRA. Is my ownership price based on the day it was bought or when I inherited it?

    If a Stock was bought 2 years ago at $50, I inherited it at a price today at $150 and I sell it, am I taxed as a Long Term Gain for $100 or does it reset to $150 for me as my cost basis?
  • twentyfive
    •
    9 hours ago
    ^ resets at the value the day you inherited it.
  • mogul1985
    •
    9 hours ago
    BTW, if Harris is elected, taxes are going up across the board. The Trump Tax Cuts are up next year (or 2026) to expire. Dems never saw a tax they didn't like. And while the mantra is "no tax increases on those making $400K or less" is bullshit - it's way more complex than that and all will go up either directly or indirectly. Companies pass on cost of goods sold to end consumers.

    The top 1% income earners federal income taxes paid rose from 42% in 2020 to 456% in 2021; this was due to the Trump tax cuts that actually benefited the Middle/Lower Classes more. The top 50% of all taxpayers paid 97.7% of all federal income taxes, while the bottom 50% paid 2.3%. https://taxfoundation.org/data/all/feder…

    Reducing Corporate Taxes to 15% for companies that repatriate to the USA will actually increase employment, lower their cost of goods sold unless things like increased energy, wages, inflation cost light-up that have nothing to do with tax rates. Companies that make their stuff offshore will be at 21%. That a pretty big incentive nut for repatriation, just know it takes several years to come back with construction and so on.
  • mogul1985
    •
    9 hours ago
    @twentyfive - thank you!
  • ilbbaicnl
    •
    4 hours ago
    When you look at increases in the national debt, #1 cause is recessions, #2 cause is Republican presidents promising tax cuts "for everybody": https://www.macrotrends.net/2496/nationa…
  • drewcareypnw
    •
    8 minutes ago
    Most of us are merely bleeding money out our cocks…
  • mogul1985
    •
    4 minutes ago
    ^Ditto
  • mogul1985
    •
    3 minutes ago
    "When you look at increases in the national debt, #1 cause is recessions, #2 cause is Republican presidents promising tax cuts "for everybody" #3 excessive/deficit spending.
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