Estate taxes and the basis step-up
Reader comment on: Andrew Sorkin on Estate Tax and Carry-Over Basis
Submitted by David E. Moran (United States), Feb 27, 2019 17:32
What Sorkin misses, of course, and I am afraid you do, too, is the way estates are taxed. Estate taxes are measured by the value of the assets in the estate at date of death. This includes the "step-up" you refer to. If the date of death value exceeds the current estate tax exemption then estate taxes are due. So closing this step-up "loophole" is not as necessary as one might think. At the very least, anyone writing about this should at least describe these effects -- and, sorry to say, it is part of estate planning 101, not some sophisticated dodge. Ask any estate lawyer. Don't just read liberal talking points!
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