But financial experts say the measure may impact more families than just affluent ones.
“I think it could become a quagmire from a couple of different fronts,” said certified financial planner Ken Van Leeuwen, founder and managing director of Van Leeuwen & Company in Princeton, New Jersey.
Currently, heirs may defer taxes on inherited home gains until they sell the property.
They also secure a so-called “step up in basis,” which adjusts the home’s purchase price generally to the value on the date of death.
According to the Joint Committee on Taxation, the current law saves taxpayers $41 billion per year.
By comparison, Biden wants to treat home inheritances like a sale, making the heirs pay for gains that occurred before they received the property.
