Skip to Main Content

The Wall Street Journal Quotes Beth Kaufman: Obama Takes Aim at 'Step Up' Tax Break on Inherited Assets

January 20, 2015, The Wall Street Journal
The Wall Street Journal quoted Beth Shapiro Kaufman regarding President Obama's proposal to impose capital-gains tax on gifts made during one's lifetime. For the complete article, please visit The Wall Street Journal's website.

Excerpt taken from the article.

Under the Obama proposal, such gifts made during one's lifetime would trigger capital-gains tax. The proposal doesn't say whether the giver or the recipient would pay the tax. Beth Kaufman, a lawyer with Caplin & Drysdale in Washington, speculates that the giver would bear the tax, and the recipient would receive an asset with a cost basis of current market value.

The answer to another important issue for wealthy people is unclear, based on the description in the president's proposals, she says. Namely, would the capital-gains tax imposed at death be deductible from the estate tax? If it isn't, she notes, then the combined federal capital-gains and estate-tax rate at death would be 68%—plus any state levies due.

About Caplin & Drysdale
Celebrating our 55th Anniversary in 2019, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
New York, NY Office:
295 Madison Avenue
12th Floor
New York, NY 10017


This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2022 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)