HR 1301
Death Tax Repeal Act
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Bill overview
This bill, titled the Death Tax Repeal Act, proposes to eliminate both the estate tax and the generation-skipping transfer tax (GSTT) from the Internal Revenue Code. It achieves this by terminating these taxes for estates and transfers occurring on or after the date of enactment. The bill also includes adjustments to the gift tax computation and modifies the lifetime gift exemption to account for inflation.
Key provisions
- Repeals the estate tax for estates of decedents dying on or after the date of enactment.
- Repeals the generation-skipping transfer tax for transfers occurring on or after the date of enactment.
- Modifies the computation of the gift tax to align with the estate tax repeal.
- Increases the lifetime gift exemption amount annually to account for inflation.
- Creates a transition rule to treat the year of enactment as two separate calendar years for certain tax calculations.
- Addresses distributions from qualified domestic trusts to preserve certain survivor benefits.
- Includes clerical amendments to the Internal Revenue Code tables of sections.
Who is affected
- Heirs and beneficiaries of estates
- Estate planning attorneys
- High-net-worth individuals
- Financial advisors
- The Internal Revenue Service
Notable changes
- Eliminates the federal estate tax.
- Eliminates the federal generation-skipping transfer tax.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
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119th CONGRESS — 1st Session
H. R. 1301
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes.
This Act may be cited as the Death Tax Repeal Act
.
Subchapter C of chapter 11 of subtitle B of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
Death Tax Repeal Act
.In applying section 2056A with respect to the surviving spouse of a decedent dying before the date of the enactment of the
Death Tax Repeal Act
—section 2056A(b)(1)(A) shall not apply to distributions made after the 10-year period beginning on such date, and
section 2056A(b)(1)(B) shall not apply on or after such date.
The table of sections for subchapter C of chapter 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
Subchapter G of chapter 13 of subtitle B of such Code is amended by adding at the end the following new section:
This chapter shall not apply to generation-skipping transfers on or after the date of the enactment of the
Death Tax Repeal Act
.The table of sections for subchapter G of chapter 13 of such Code is amended by adding at the end the following new item:
a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
| If the amount with respect | |
| to which the tentative tax | |
| to be computed is: | The tentative tax is: |
| Not over $10,000 | 18% of such amount. |
| Over $10,000 but not over $20,000 | $1,800, plus 20% of the excess over $10,000. |
| Over $20,000 but not over $40,000 | $3,800, plus 22% of the excess over $20,000. |
| Over $40,000 but not over $60,000 | $8,200, plus 24% of the excess over $40,000. |
| Over $60,000 but not over $80,000 | $13,000, plus 26% of the excess over $60,000. |
| Over $80,000 but not over $100,000 | $18,200, plus 28% of the excess over $80,000. |
| Over $100,000 but not over $150,000 | $23,800, plus 30% of the excess over $100,000. |
| Over $150,000 but not over $250,000 | $38,800, plus 32% of the excess of $150,000. |
| Over $250,000 but not over $500,000 | $70,800, plus 34% of the excess over $250,000. |
| Over $500,000 | $155,800, plus 35% of the excess of $500,000. |
Section 2505 of such Code is amended by adding at the end the following new subsection:
In the case of any calendar year after 2011, the dollar amount in subsection (a)(1) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2010
for calendar year 2016
in subparagraph (A)(ii) thereof.
If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.
The heading for section 2505 of such Code is amended by striking Unified
.
The item in the table of sections for subchapter A of chapter 12 of such Code relating to section 2505 is amended to read as follows:
Section 2801(a)(1) of such Code is amended by striking section 2001(c) as in effect on the date of such receipt
and inserting section 2502(a)(2)
.
For purposes of applying sections 1015(d), 2502, and 2505 of the Internal Revenue Code of 1986, the calendar year in which this Act is enacted shall be treated as two separate calendar years one of which ends on the day before the date of the enactment of this Act and the other of which begins on such date of enactment.
For purposes of applying section 2504(b) of the Internal Revenue Code of 1986, the calendar year in which this Act is enacted shall be treated as one preceding calendar period.