At some point such loans will have to be paid back and tax will be paid. Alternatively, we could require that the capital gains on an asset used to collateralize a loan be taxed at that point.
Unless you just don't, carry them across death when the basis is reset and pay them then.
Is there any good reason to not eliminate step-up basis on death?
Apparently no one can afford the tax bill on an inherited farm, and it looks terrible forcing family farms to sell their land to a large conglomerate.
It still doesn't make sense to me. If I inherit a farm or other asset, I don't owe capital gains until I sell it right? If the basis remained the same, it's not like I suffer in any way upon inheritance.
I am not a tax expert, but I am pretty sure a change of ownership (minus the exempt amount) is a taxable event.
How many of those are really left anyway but yeah the pr is bad
Fwiw, I don't think this basis step-up thing is a thing in German tax/inheritance law.