re: Capital Gains at Death

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That's not what I'm suggesting. I am saying, keep the estate tax exemption as is. When and if you do sell the stock down the road, you pay the capital gains tax based on the entire gain.

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It is what you are suggesting, you just don't have malice in your heart like the president. Fact is that people inhereit real estate, which then has to be sold in order to pay the estate taxes. Yes I know there is a 5.25mil exemption, but for someone who just inherited a lot of land, how does it feel to have to sell that land to pay the tax bill?

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If the dead relative sold it the day before he died, and left you the cash, he'd have to pay capital gains tax on it, right?

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That's correct

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In other words, the fact that someone died should not cause an item to not be taxed, if it would have been taxed had the person died and not sold it.

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But that is the effect. The heirs will sell the property to pay the tax bill on the total amount inherited, and then with no step-up in basis, they will be taxed on the gain that goes all the way back to its original acquisition.

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My personal feeling on the estate tax is that it is unfair and punitive and should be eliminated. But this is a different story.

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It is immoral. It doesn't in any way effect the federal budget. The only reason to change it is to redistribute wealth. That's it.