/biz/ - Business & Finance

I realize that this thread will die in minutes because it has nothing to do with crypto, but it's still an important subject... Democrats want to do away with the step-up rule.

Why does it matter to you? It doesn't, unless your boomer parents have been socking away their money in stocks for decades. If they have, then it matters a whole lot to YOU.

What is the step up rule? Here's how it works... Imagine if you buy a stock at $20, and after holding on to it for years it goes up to $180. If you sell that stock, you have a "capital gains", and have to pay tax on the profit ($180-20 = 160).

BUT... if you hold onto the stock until you die and never sell it, your beneficiaries get to "step up" the cost basis to the value on the date of your death.

In other words... that $160 per share taxable capital gains tax disappears.... the stock (or cash if you sell it), goes to you TAX FREE.

But the dems think that's unfair, so they want to rob your parents estates because they think that THEY deserve the money more than YOU do.