What a scum sucking lying “senator from MBNA” (his old nickname.. from Delaware the capital of credit card usury and appalling money tricksters— and from whom he got and gets lots of political money, as their huckster).
The policy/law by State and also by Federal laws— of stepping up (increasing) the cost basis of long term held assets (such as in FL, the Homestead exempted longheld home of retirees, seniors) is increased by a formula or fixed figure... to compensate the massive capital gains tax that would ensue. Primary residence (homestead) is “stepped up” to current values- example purchase a home in 1950 for 2000, and in 2019 it is appraised at 350K or higher— imagine the cap gains tax this would generate— were it not for this “step up”.
Greedy conniving lying socialist biden— is after a massive amount of forced estate taxes— from real estate, stocks, etc. Something his corporatist socialist pals would love— and especially the career ripoff gubmint agencies and their ever increasing needs for budgets to spend spend spend.
Appalling lying bastard. Not long for it, mentally, morally and a whole lot else.
As far as I know, the "step up" in the cost basis of assets for capital gains tax purposes only applies to assets that wouldn't be subject to estate taxes anyway.
If you bought 1,000 shares of Company X back in 1980 for $5 per share, you have a cost basis of $5,000 for that asset.
If the stock is now worth $200 per share, your asset is worth $200,000. If you sold it today, you'd pay a capital gains tax based on a gain of $195,000.
But if you died today and these shares were left to your family, there wouldn't be any estate tax on the inheritance -- regardless of whether the IRS valued it as a $5,000 asset or a $200,000 asset. That's because the estate tax exemption for 2019 is more than $11 million.
The purpose of the "stepped up basis" rule is to establish the cost basis of the asset to its value at the exact time the actual owner of the asset acquired it. If you inherited $200,000 worth of stock in 2019 that had been purchased in 1980 for $5,000, you can't be forced to use a $5,000 cost basis for capital gains tax purposes when you sell the asset later ... because that would mean you did NOT get the estate tax exemption that you were entitled to.