Quote:
Originally posted by taxwonk
Right now, property that passes at death gets a stepped up basis. Those 10,000 shares of IBM stock that Gramps bought at $5 back in 1962, they now have a basis equal to whatever the close waa on IBM on the day Gramps dies. With the loss of a basis step-up, the stock keeps its $5 basis. So, when you go to sell the stock to pay for a nursery for Sebby, Jr., you get taxed on a $100/share capital gain.
Does that clear it up?
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No, I get it. But why is that step up fiddling tied to the estate tax repeal? Why aren't they just repealing the tax, like they're advertising? Who inserted these provisions fucking with the step up?
