Pascrell Welcomes IRS Estate Tax Item In Guidance Plan (1)

Practitioners and a key lawmaker welcomed the addition of a new estate-tax item on the 2022-2023 IRS priority guidance plan released Friday that will address whether certain trust assets are eligible for stepped-up basis.

The plan includes a guidance project on the availability of stepped-up basis for grantor trusts when the assets in the trust are excluded from the owner’s estate for estate-tax purposes. Stepped-up basis means that when an heir sells an inherited asset, the heir only has to pay capital-gains taxes on the increase in value that occurred after the decedent’s death.

Rep. Bill Pascrell (D-N.J.), chair of ...