For someone who died during 2012 the maximum estate tax would have been 45% of an assets value while the maximum long-term capital gain tax would have been 15% of the sales price less the adjusted basis in the asset.
Actually, it was 35% and 15% in 2012.
For 2013, it is 40% and 20%.
Also, for 2013, the $5 million is indexed to inflation for a total of $5.25 million ... with the portability still in place, so a couple can transfer $10.5 million. OF course, in community property states this typically isn't a big deal with the unlimited marital deduction.
One of the biggest flaws of the estate tax before 2011 was that it wasn't indexed for inflation. For a LONG time it was $600,000, then it went to $1 million (as I recall). Then it went to something like $3 million.
Now, it's indexed to inflation -- which really makes sense. So, unless Congress changes the law, it will be $5 million -- indexed to inflation. In 2012, that $5 million was $5,120,000 and in 2013, like I stated earlier, it's $5,250,000. You can look for similar $100,000 plus
every year in the future.
This post was edited on 1/20 at 1:28 pm