Quote:
Originally posted by ltl/fb
Why would you think there should be a step up in basis when ownership moves because of death? Unless you are saying that when the estate tax is repealed, all capital gains taxes should be repealed, in which case the whole basis issue is moot. Uh, except I think basis has to do with depreciation, but I don't think that's relevant here.
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There's a decent argument for stepped up basis of administrative simplicity. Establishing the cost basis of your own holdings (i'm talking stocks, houses, etc., not companies) is difficult enough when they're your assets. Much more challenging when they're your parents, who probably kept shitty records.
That said, there's no good reason to allow assets transferred at death to escape taxation altogether.
