New Legislation - Stepped Up Basis?

[Snaggletooth]

NYEA has stated that it is a "fools errand" to spend time on pending legislation while still in congress, and I have to agree with him.

And I don't want to get into partisan politics other than to state a fact - influential sources in the current administration have looked with a greedy eye at curtailing the benefits of stepped-up basis. With respect to revocable and irrevocable trusts has their been any recent legislation (or eminent legislation) which has changed the rules, and pulled the rug from tax planners? As a profession, we are often bombarded with estate planning questions even though lawyers should be getting the questions.

[DoubleO]

Not new legislation, but have you read RR 2023-2?

[Rapid Robert]

"the benefits of stepped-up basis."

Which are exactly, what? It seems that if you get a stepped up basis, I (as another taxpayer) get a detriment of more tax to pay, not a benefit from it.

(And since we're mentioning the good advice of NYEA, we should also note that it is not actually a "step up", but rather an adjustment of basis to FMV, whether up or down.)

In the case of stepped up basis, it is like the opposite of double taxation, and just as bad/unfair. Double taxation means income is taxed twice; step up basis means income in most cases is not taxed even once. Adjustment of basis to FMV at death only makes sense theoretically if there is an estate tax on the full value of the asset, no exemptions.

[Snaggletooth]

Thank you O O. It is as I had feared. Snag.