How Will the New Estate Tax Rule Affect Your Operation?
Back on March 22 we had posted on a letter by four Senators to the IRS urging them to make some changes to various estate tax rules. We now have the first response from the IRS.
On March 29, the IRS released Revenue Ruling 2023-2 indicating that assets placed into a grantor trust will not get a step-up in basis at death if they are not included in the taxpayer’s estate.
There has been a long-term debate on whether these assets should get a step-up. Many tax professionals argued that a termination of a grantor trust at death is somehow a bequest which would allow the step-up.
By PAUL NEIFFER
March 31, 2023 agweb.com