There’s no escaping death and taxes — and under President Biden’s tax plan, the so-called “death tax” is poised to pack a wallop for New Yorkers.
The White House’s proposed tax law will for the first time treat inheritance tax as a capital gains event, meaning any heirs to an estate could pay the 39.6 percent capital gains rate on inheritance. That’s in addition to federal net investment income tax, New York state and city taxes, New York’s estate tax and the federal estate tax.
The eye-popping total? A 78.9 percent rate on the wealthiest New Yorkers inheriting assets — up sharply from the current rate of 49.6 percent.
A Biden spokesperson confirmed that the wealthiest people in blue states could be facing sky-high inheritance tax but noted, “The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.”