Posted 6/30/2020 09:41 (#8345017 - in reply to #8344893) Subject: RE: I guess stepped up basis is considered a loophole
Columbia Basin, Ephrata, WA
w1891 - 6/30/2020 06:44
And the common laborer who has to earn the 9334 to pay for that same land has to pay tax on that whole amount. Meanwhile the holder of the capital asset has the 9334 in value while paying taxes on only 3000. The only validity in your argument would come from the idea that the same amount of work was required to earn that amount. Wage inflation has not kept up with asset inflation(compounding works very well here).
They paid the taxes on that $3000 forty years ago. Time value of money, a totally foreign concept to most people, means that the taxes on the full $9334 have essentially been paid.