Central North Carolina | H3f - 6/30/2020 13:37 Short answer: I think the state already assigns a value for you at zero cost to you. Slightly longer answer: You could use any value you wish as long as it comes reasonably close to a certain percent of value at time of deed change (sale or death). This is more to point out one of the ways capital has the advantage over labor. Labor pays a tax every year (and at a higher rate), capital doesn't necessarily have to pay a tax.
Yes labor pays every year but investments only pay when sold. If the rates are high folks will just hold. It is effectively a voluntary tax. In the past when cap gains have gone down gov. revenues have gone up, over the short run, since there is less of a tax cost for selling.
Edited by Douglas 6/30/2020 13:43
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I guess stepped up basis is considered a loophole
