Posted 6/30/2020 10:51 (#8345145 - in reply to #8344857) Subject: RE: I guess stepped up basis is considered a loophole
Consider this. I bought land for 2000/acre which is now worth about 10,000/acre. Yes there is a gain of 8000, but only if it is sold. Then when I pass and leave it to my son he doesn't sell it. No gain is realized in dollars, only a number on the balance sheet. With out stepped up basis he could owe perhaps 20% on the 8000/acre gain or 1600 per acre. That's just wrong for an asset that only cost 2000 to begin with. Yes the exemption allowance will cover some of this if not lowered, but those really wealthy individuals will find ways around the tax anyway. You really think Biden would fork over 20% of his net worth?