Quote:
Originally posted by Mmmm, Burger (C.J.)
They took away the step-up in basis to compensate for no estate tax. Otherwise there's a double benefit--not only do you get the asset tax free, but you don't have to pay tax on accrued gains. This makes some sense, so that people don't artificially hold onto assets. One othe rpossibility is death is a realization event, and the estate has to pay all taxes. But everything after cap gains taxes goes to heirs, with no additional estate tax.
Anyway, I'm surprised our urbane sebby is in cahoots with the red-state farmers who think that repeal of the death tax is the most important thing since sliced bread, 'cuz when daddy leaves the two mules and the big red barn, they don' want no guvment taking one of 'em mules.
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Sweet pea, seriously, I understand the new tax system. Of all people.
I was drawing the distinction between realization and recognition, which you seem to be using interchangably. It's not that important, but you might want to explore the differences when you get a minute if you are going to talk about tax policy.
