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The step up basis only applies to estate taxes below the federal limits, so it doesn't apply to super-rich. ...another point (deliberately?) omitted from OP's
by koheripbal 5y ago
The step up basis only applies to estate taxes below the federal limits, so it doesn't apply to super-rich. ...another point (deliberately?) omitted from OP's article.
Step up basis might get eliminated in any case, as the Biden Administration is proposing to remove it.
- bradleyjg 5y agoThat’s not quite right. The step up basis applies to everyone. It is true that if estate taxes are paid on the gains then the step up loophole hasn’t completely eliminated taxes on capital gains. However, the estate tax is even more full of loopholes than the capital gains tax. See for example the Grantor Retained Annuity Trust. Finally, the Biden administration is not proposing to eliminate the step up basis entirely, unfortunately, but merely rein it in some.