Many of us have parents or grandparents that bought their homes decades ago for a very low price. The idea of passing on the family home as a large asset without much negative tax consequence may be gone forever.
One of the President’s proposals for his new budget is to take basis back to the original purchase price. Here is an example:
We bought out house for $144k, it recently appraised for $390k. If I assume an annual appreciation rate of 3% that value in 30 years would be $922,000. Upon our death our daughter could sell the house only be taxed on anything she might get over the $922,000 under current law.

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