Obama Sends Congress FY 2011 Budget; Proposes Modification of Estate and Gift Tax Valuation Discounts And Projects Additional Revenue of Nearly $19 Billion Over Ten Years

2/1/2010 12:00:00 AM

As part of the 2011 Fiscal Year budget released on Feb. 1, the Obama Administration proposed several “reforms to close tax loopholes,” including a modification of current rules governing “estate and gift tax valuation discounts.”  Under its projections, these changes would yield additional revenues of $7.1 billion over five years and $18.7 billion over ten years.  The FY 2011 budget suggests that the Administration plans to push for enactment of estate and gift tax valuation discount changes  before the end of 2010.

To read the summary tables for the Obama Administrations proposed FY 2011 budget, click here.  To read the Department of the Treasury's explanation of the budget and proposed changes, click here.  The proposed changes to valuation discounts are explained on page 124 of the Treasury document.

American Society of Appraisers

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