Sentence examples similar to step up basis from inspiring English sources
*Correction: An earlier version of this post said that the tax rate on capital gains for high earners was twenty per cent, and that the "stepped up basis" loophole relates to the estate tax, rather than the income tax.
The other reform would eliminate a loophole in the income-tax code that allows heirs to reduce their tax bills.* Known in the industry as the "stepped up basis" loophole, it allows the beneficiaries of estates to estimate the cost basis of their inheritances at current market prices, rather than the prices that were paid for them, often years earlier.
And he added: "German consumers have been generally reluctant overall to significantly step up their spending on a sustained basis in an uncertain environment".
The report also calls for tightening up the tax code, by, for example, reforming the "step up in basis" provision that enables wealthy families to reduce — often by large amounts — the estate taxes they pay.
More specifically, he wants to increase the tax rate on capital gains for high earners, from 23.5percentntotwenty-eightght per cent, and he also wants to remove the so-called "step up in basis" loophole, which allows rich families to reduce, often greatly, the amount of taxes they pay on their estates.
If grandparents sell appreciated stocks to raise that cash, they have to pay gain taxes and lose the opportunity to step up the basis in these stocks at their deaths.
In accounting terms, this is the "step up in basis" on death.
Q. What, if anything, is Congress most likely to do regarding the federal estate tax and the step-up basis on estate assets before the scheduled changes on these two matters become effective in 2010?
