Overview
Under the Internal Revenue Code, property acquired from a decedent is excluded from gross income and receives a new basis allowing appreciation to escape income tax entirely at death. By virtue of the gross income exclusion under I.R.C. § 102, property acquired from a decedent is not subject to income tax. By virtue of the step up of basis under I.R.C. § 1014, any built-in gain for property acquired from a decedent is eliminated. The rules are not subject to any phaseout, floor, haircut, or other dollar limitation.
This treatise provides tax practitioners with planning opportunities and traps to consider before and after death. With proper planning, discrepancies under the Code are cured, traps are avoided, and traditional estate planning techniques combined with additional income tax planning lead to favorable estate and income tax results.