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Capital Gains Tax Triggered by Gifts and Inherited Appreciated Assets

This law treats the transfer of appreciated property (like stocks or real estate) by gift or at death as a sale at fair market value, immediately triggering capital gains tax liability. While eliminating the previous tax benefit (step-up in basis), it includes a significant exclusion of up to $1 million in realized capital gains upon death. Citizens transferring high-value assets must prepare for immediate tax obligations upon gifting or inheritance.
Key points
Capital gains tax is now due immediately when highly appreciated assets are transferred as gifts or inherited, effective January 1, 2022.
An exclusion shields the first $1 million of capital gains realized upon a person's death from this new tax.
Transfers between U.S. citizen spouses remain exempt from this immediate tax realization.
Executors can elect to pay the resulting tax bill over a period of up to 7 years for certain non-traded assets, easing liquidity concerns.
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Additional Information
Print number: 117_HR_2286
Sponsor: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Process start date: 2021-03-29
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2286.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-29.

What are the main provisions?

Key points include:

  • Capital gains tax is now due immediately when highly appreciated assets are transferred as gifts or inherited, effective January 1, 2022.
  • An exclusion shields the first $1 million of capital gains realized upon a person's death from this new tax.
  • Transfers between U.S. citizen spouses remain exempt from this immediate tax realization.
  • Executors can elect to pay the resulting tax bill over a period of up to 7 years for certain non-traded assets, easing liquidity concerns.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Pascrell, Bill, Jr. [D-NJ-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Family Real Estate