Senator Christopher Van Hollen and Representative Bill Pascrell have both introduced bills to repeal the step-up in basis and create a gain realization at death and gift similar to the system in Canada. President Biden supports both of these proposals. The Van Hollen proposal would be effective on 1/1/2021.

In this fast-paced class, Robert S. Keebler, CPA/PFS, MST, AEP, will address the legislative framework of the Pascrell and Van Hollen bills, including retroactive gain realization on 2021 gifts.

This course is a “must-attend” for CPAs, EAs, tax lawyers, financial advisors, and accountants having clients with appreciated assets in their portfolios.

Learning Objectives:

• Recognize how gains will be recognized at death


• Recognize what gains will be realized upon gifting


• Determine when a 39.6%-LTCG rate applies


• Identify how depreciation recapture will work


• Determine what planning will mitigate the 39.6% rate


• Identify the exemptions and exceptions


• Identify the spousal exception(s)


• Define the $1,000,000 exemption for each spouse


• Identify the exemptions and exceptions for gifts made during life as well as after death


• Determine if gifts can be made to grantor trusts and/or non-grantor trusts in 2021 without gain realization


• Propose how the Van Hollen and the Pascrell bills interact with the anti-grantor trust provisions of the Sanders legislation


• Determine the 21- and 30-year gain realization rules for trusts


• Identify if gifts can be made to charitable trusts and/or charity


• Determine how the 15-year loan will work and who is eligible


• Evaluate what practitioners should do to warn clients that are considering making large gifts in 2021