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Rev Proc 99 38 Internal Revenue Service Form

Rev Proc 99 38 Internal Revenue Service Form

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what is revenue ruling 2023-24 that affects the step up and basis when using irrevocable trusts so let's start with what is a step up and basis so a great example of this is when passing real estate down to maybe your kids or your beneficiaries your kids can get a step up and basis in the property that you're transferring to them what that looks like is maybe you purchased your home for 150,000 10 years ago and now with inflation and where the real estate market is the house is worth 500,000 well if you were to transfer the asset to your kid during your lifetime they would not receive a step up in basis and there' eventually be tax owed on the difference between the 150,000 and the 500,000 but if you transferred upon death they get what's called a step up and basis and so they would inherit the home or the property as though they paid 500,000 so now when they go to sell it let's say they sell it for $550,000 one day they would only be tax outed o

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