Permanently Repeal the Estate Tax Act of 2023
Source: Congress.gov ·
234 words in original text
What This Bill Does
This bill would eliminate the estate tax, which is a federal tax on the transfer of property when someone dies. The bill also would keep the "stepped-up basis" rule in place, which allows heirs to receive property at its current market value rather than the deceased person's original purchase price for tax purposes.
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Who It Affects
People who leave behind large estates (property and assets) when they die and their heirs who inherit that property.
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Key Provisions
• The federal estate tax is completely eliminated (repealed) (Sec. 2)
• The stepped-up basis at death is retained (kept in place) (Sec. 2)
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What Changes
If this bill becomes law, families would no longer owe federal estate taxes when someone dies and leaves behind property or assets. The rule allowing heirs to receive inherited property valued at current market prices for tax purposes would remain in effect.
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Important Definitions
• Estate tax: A federal tax on money and property passed to heirs when someone dies
• Stepped-up basis: A rule that values inherited property at its market value on the date of death rather than what the original owner paid for it
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Effective Date
For estates of people who die after December 31, 2022 (Sec. 2)
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.