"HW \"Skip\" Weldon" writes:
There IS basis step up. It's a limited amount and gets allocated
amongst assets by the executor or estate representative. Up to
$1.3 million in basis increase (not to exceed fair market value).
Plus up to an additional $3 million of basis increase may be
allocated to certain property going to or owned by the surviving
Here's the relevant law:
On the other hand, two competing fixes are being floated in Congress
again. One of them, very unlikely to actually pass and survive any
challenges, is a backdated fix to the beginning of the year. Since a
multi-billionaire has died in this period of time, there are some
folks out there with billions of dollars to lose on this - you can bet
they'll fight such a retroactive fix all the way to the supreme court.
Both fixes reimpose the $3.5 million threshold, one of them with rates
that reach 60% (for estates over $1 billion, via a "surtax").