Treating a valuation as if it was actual income is highly misleading. If you inherit something without paying a tax in the gain in value, fine. But being able

Treating a valuation as if it was actual income is highly misleading. If you inherit something without paying a tax in the gain in value, fine. But being able to declare your basis in it at the newly gained value allow taxes on its eventual sale to skip a massive gain in value. That is the sketchiest aspect IMHO.