I thought this was pretty ho-hum, the IRS just stating what has
been known for years. But then I read this article:
https://www.forbes.com/sites/alangassman/2023/04/07/revenue-ruling- 2023-2-got-it-wrong-the-casse-for-a-stepped-up-basis-when-the-grant or-dies/?sh=234585da5d1a
I still think these people are grasping at straws, especially
since the Revenue Ruling cited a couple court decisions as to what
"property acquired from a decedent" means.
I am curious as to your thoughts.
Even more interesting is this:
"If and when the Tax Court, the Court of Claims, and/or an
appellate court agree with the position that a step-up in basis
has occurred on the death of a Grantor, then tax practitioners and
their clients will question whether the best advice was to not
take the step-up, or to take the step-up and advise the IRS in the conventional manner available of the position taken. Many
taxpayers will file an income tax return and pay the tax as if no
step-up occurred, and then file an amended return with prominent
disclosure to reduce or eliminate the IRS's ability to impose
negligence and substantial understatement penalties. "
If an amended return is filed in order to assert there was a step
up in basis and the IRS denies that position, is there a time
limit for future recovery in the event a court later holds that
position was indeed correct?
Sysop: | Keyop |
---|---|
Location: | Huddersfield, West Yorkshire, UK |
Users: | 300 |
Nodes: | 16 (2 / 14) |
Uptime: | 49:18:06 |
Calls: | 6,711 |
Calls today: | 4 |
Files: | 12,243 |
Messages: | 5,354,778 |
Posted today: | 1 |