Re:The ETF Tax Dodge
by sokoloff on Sunday March 31, 2019 @04:15PM
(#19538073)
The basis is reset to the FMV on the date of death currently. It's probably possible to 1031 exchange the real estate portion into the real estate portion of the medical practice. (I am not a tax expert.) More likely though, you just take the inherited step-up in basis and sell the thing outright.
> how is that better than leaving its basis where it is but allowing it to be sold and the low tax basis transferred [to another investment]?
IMO, that is better from a record-keeping and audit perspective. It is often not possible to determine when or at what basis an asset was acquired, particularly when the original purchaser can no longer be interviewed. It is not a particularly exploitable loophole as you have to die to "take advantage" of it.
> how is that better than leaving its basis where it is but allowing it to be sold and the low tax basis transferred [to another investment]?
IMO, that is better from a record-keeping and audit perspective. It is often not possible to determine when or at what basis an asset was acquired, particularly when the original purchaser can no longer be interviewed. It is not a particularly exploitable loophole as you have to die to "take advantage" of it.