Quote:
Originally posted by Mmmm, Burger (C.J.)
True, except that under the current estate tax repealer, it also repeals the step-up in basis. If death is irrelevant, then there's neither a realization event nor a step-up.
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Yeah, and note that Bush's/the Rs revenue forecasts for that tax package cut off at EXACTLY THE SAME TIME the estate tax repeal kicks in.
That is a side note. Under current law, there is a step-up in value and no recognition of any built-in gains, but you have the estate tax.
Under the new law, is there really
neither realization nor recognition? I would think that they would have to realize the gain -- I mean, they *have* the stuff they inherited. They probably just don't have to recognize the gain until they re-transfer it. Which is kinda fucked up -- the ownership of the asset gets transferred, but it's not a recognition event. Must be nice. And quite, QUITE the incentive not to transfer whatever it is you inherited to someone who could use it better.
I tend to think it's not that bad that the current system encourages transfers (so that the inheritor can pay the taxes). Grandpa's been holding onto that land for no other reason than to avoid paying taxes on the gains, anyway.
