[credit_guy]

> if the cost basis is allowed to rise without paying any taxes (?!)

It's a common misconception that the step-up in basis means the heirs don't pay taxes, and therefore the billionaires are giving us the biggest shaft.

The heirs pay estate tax, and once they pay the tax, the basis resets. It would be very unfair if it didn't. However, the tax exemption for the estate tax is quite large (about $13MM for federal for 2023, but going to $7MM in 2026).

For billionaires though, the estate tax exemption is negligible. The heirs end up paying estate tax for everything they inherit minus $13MM, which is nothing for them.

So, again, if this benefits anyone, it's the less rich people.

[dataflow]

Thanks, that makes a lot more sense now. Then we go back to my initial question - where exactly is the loophole here? The tax is being deferred, not avoided entirely. Yet the article makes it seem like they somehow avoid it?

[MikePlacid]

They do not want to tell you: we want to close this tax planning possibility that everyone - including you - can use. So they tell you: Steve Balmer, loophole, avoidance!

The original “wash sale” prohibition is pretty unfair and damaging to every single stock owner. Since it does not hold water mathematically, it’s prone to loopholes. You need to spend more time to find loopholes - so only wealthy tend to benefit from them. You want to make stock ownership more “equitable” - repel the original “wash sales” law.