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Isn‘t this a false dichotomy? Removing the cost basis step-up doesn‘t automatically mean any taxes are due on the inheitance - you could just keep the low cost
by yccs27 2y ago
Isn‘t this a false dichotomy? Removing the cost basis step-up doesn‘t automatically mean any taxes are due on the inheitance - you could just keep the low cost basis and pay the tax once you actually realize your gains.
- lokar 2y agoExactly, today people get both: they inherit the assets with a stepped up basis, and also don’t pay tax
- tqi 2y agoDon't you need money to pay the estate tax?
- yccs27 2y agoOh, good point. For that, you could allow people to pay off estate taxes over multiple years, if the tax is higher than the available liquid assets.