Carryover Basis: A Cure Worse than the Disease?

2 Pages Posted: 19 Oct 2010

Date Written: October 18, 2010


This article discusses the tax treatment of capital gains at death. In 2001, Congress enacted carryover basis beginning this year, meaning that heirs inherit the original basis for tax purposes along with the assets. When they are sold, they are supposed to pay taxes on all the gains accrued since an asset was originally purchased by the decedent. This was tried previously and proved to be an administrative nightmare.

Keywords: Carryover Basis, Step-Up Basis, Capital Gains, Estate Tax

JEL Classification: E62, H23, K34

Suggested Citation

Bartlett, Bruce, Carryover Basis: A Cure Worse than the Disease? (October 18, 2010). Tax Notes, Vol. 129, No. 3, p. 361, October 2010, Available at SSRN:

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