Chuck O'Toole of Tax Analysts, reports that House Democrats are wrapping up their business for the year, leaving the Senate to deal with the estate tax. The House will take up consideration of several bills before the holiday break, but a bill that would provide a short-term extension of the estate tax does not appear to be one of them.
If the estate tax does expire on January 1 as scheduled, it will be replaced with a capital-gains tax on inherited assets using the carryover-basis rules instead of receiving a step-up in basis. It would then return in 2011 with the higher 2001 rates.
See Chuck O'Toole, "House Prepares to Leave Estate Tax to Senate," TNT 239-1, (December 16, 2009)
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