Krystal suggests that the tax code allowing for a stepped$-$up basis $($a code section that allows heirs to receive inherited property with a basis that equals FMV at the time of death$)$ is flawed and should not be allowed, especially for billionaires who utilize it to avoid taxation by simply holding on to their assets until death and then passing them onto their children "tax$-$free". What are some potential positive vs$.$ negative consequences of doing away with stepped$-$up basis for inherited assets? Do you think the positives outweigh the negatives?

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Potential Positive Consequences of Doing Away with SteppedUp Basis for Inherited Assets 1 Increased Tax Revenue Eliminating the steppedup basis could ... View the full answer