Realization of Gains Under the Comprehensive Inheritance Tax

  Laura E. Cunningham (Professor of Law, Benjamin N. Cardozo School of Law, Yeshiva University) and Noel B. Cunningham (Professor of Law, New York University School of Law) recently published their article entitled Realization of Gains Under the Comprehensive Inheritance Tax, 63 Tax L. Rev. 271 (2009). The conclusion is below:

Congress will be forced to face the looming repeal and re-enactment of the current federal transfer tax system head on in the near future. Batchelder’s proposed CIT is an excellent alternative. We would amend her proposal, however, by adding a realization-at-death rule in lieu of carryover basis. We believe this proposal is preferable on equity, efficiency, and simplicity grounds, and that it would be as feasible from a political standpoint. The result would be a transfer tax system that better achieves the historical reasons for taxing gratuitous wealth transfers.