As part of his new tax plan, the president has proposed ending the “step-up” in tax basis for inherited assets, and, furthermore, requiring the capital gains tax to be paid at death rather than when an heir later sells...
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- Tax Reform Anyone?
Tax Reform Anyone?
The complexity of our federal tax system was highlighted today in a piece on IRS real estate investment rules. From Dow Jones Newswires via the Myrtle Beach Sun News:
NEW YORK - Amateur "flippers" in the real estate market have more to worry about than a bubble burst. An IRS audit might interrupt their trip up the property ladder. Some amateurs are buying and selling properties too quickly, running the risk that the IRS may deem the transactions a person's business, with gains taxed as ordinary income, subject to self-employment taxes. The best way to avoid a problem is to consult a CPA or tax attorney before you begin the real-estate transaction. [Full Story]
Wouldn’t it be nice if investors and entrepreneurs could concentrate their efforts on making sound business decisions, instead of consulting a CPA or a tax attorney about tax code provisions? When the President’s Advisory Panel on Federal Tax Reform presents their recommendations, let’s hope that Congress doesn’t put them on the shelf to collect dust. The American people deserve a tax system that is simpler, more intelligible and easier to comply with.
You can read Tax Foundation research on tax complexity here.
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