Friends giving up collecting in 2023 - Post continuation

[Fred]

Originally Posted by Exhibitman

My understanding is that all property you inherit steps up in basis to FMV at the time of death (or the alternative valuation date, if the estate uses one). When you inherit and sell, the FMV is the basis to use when calculating gains or losses. if you inherited a PSA 10 Michael Jordan RC the day after one sold for over $700K your basis in the card is that auction price, and you could sell it at current market of about $200K and not only not pay income tax on the sale, you would have a loss carryover that would gobble up investment income for years to come.

How you sell can alter the outcome even more favorably; I will be addressing this in my column in the future. New posts go up Saturdays.

Adam, are you a tax attorney?

I never really thought about it the way you described (frigging great idea). I wonder if the losses (as described in your post - $500K) could also be used to offset stock gains? If so - wow, seems like something to consider when planning investment strategies.

Well, I guess we'd be planning strategies for our families because for them to inherit the stuff, we'd have to be dead...