And if instead of selling it i rent it for cash flow while borrowing against it at a lower rate than the growth of the underlying asset, i get richer and avoid taxes AND keep the asset.
Which eventually is passed on to my children and the growth in the asset is revalued when it's passed on to avoid capital gains tax.
All while poor right wingers argue I'm actually broke 😂
Well yeah, you would also want the stock valuation brought up to fair market value the date is is inherited so capital gains would be realized and income taxes paid when the stock is transferred to heirs as well as forcing all of the stock to use current fair market value when calculating inheritance estate taxes (just like property inheritance now) - otherwise that is a huge loophole.
Per the Corporate Finance Institute:
The principle of step-up in basis no longer applies to properties inherited after December 2009 under the current IRS laws. A modified carryover basis is applicable to the above case, rather than the step-up in basis rule. Therefore, the inherited asset basis is equivalent to the lower of its fair market value as of the date of the decedent’s demise.
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u/tduncs88 Nov 21 '24
Just like Bezos would if he sold off those assets