IRD Capital Losses?

[Snaggletooth]

Borrowed this from JohnH where the example was given of a 97-year old man with $50,000 in capital loss carryforwards.

If he died with $50K tied up in REVENUE that was being recognized ratably over future years, IRS would call this "Income in Respect of Decedent" and this ultimately becomes taxable in the hands of the beneficiary.

The exact situation should apply in reverse. What about $50,000 in CAPITAL LOSSES that he could die and never receive the tax benefit? Can these be applied against IRD?

[Bees Knees]

No.

And since when was tax law ever consistent or fair?

You know the answer.

[Snaggletooth]

Not Fair

...yes Bees, I was almost certain the carryforward went off the cliff upon death, but I was wondering if there were a way to strategize around it.

Best tax strategy for a 97-year old is just not to have any capital losses. Kinda like the best health insurance strategy is simply to just not get sick.

Yes, it doesn't have to be fair. It is what it is. Navigating through the tax code is like walking through a minefield.