{"id":4244,"date":"2023-03-31T14:21:00","date_gmt":"2023-03-31T14:21:00","guid":{"rendered":"https:\/\/oandgaccounting.com\/staging\/?p=4244"},"modified":"2023-03-31T21:54:27","modified_gmt":"2023-03-31T21:54:27","slug":"trust-me-its-fun-a-lighthearted-look-at-irrevocable-trusts-and-step-up-basis-in-revenue-ruling-2023-02","status":"publish","type":"post","link":"https:\/\/oandgaccounting.com\/staging\/trust-me-its-fun-a-lighthearted-look-at-irrevocable-trusts-and-step-up-basis-in-revenue-ruling-2023-02\/","title":{"rendered":"Trust Me, It’s Fun: A Lighthearted Look at Irrevocable Trusts and Step-Up Basis in Revenue Ruling 2023-2"},"content":{"rendered":"
\n
\n

Hey there, tax fans! Ready for a wild ride through the land of IRS Revenue Rulings<\/a>? Buckle up, because today we’re diving into Revenue Ruling 2023-2<\/a>, and we promise to make it as fun and engaging as possible. After all, who said taxes can’t be entertaining? Let’s go!<\/p>\n

Picture this: Alex has an irrevocable trust<\/a> (we’ll call it “Trusty”), and they’ve got a valuable asset in it. Alex is wondering if the asset will get a “step-up in basis<\/a>” when they pass away. You might be thinking, “Step-up in what now?” Don’t worry \u2013 we’ll explain!<\/p>\n

A “step-up in basis” is a tax concept that adjusts the value of inherited assets to their fair market value at the time of the owner’s death. But the real question is whether Trusty’s asset will get this tax perk. The answer, courtesy of the IRS, is a resounding “Nope!”<\/p>\n

So, why doesn’t Trusty’s asset get the step-up? Let’s break it down into facts, laws, analysis, and holdings so you can see for yourself.<\/p>\n

Facts<\/strong> Alex creates Trusty and puts a valuable asset in it. The trust is set up in a way that excludes the asset from Alex’s estate when they pass away. As time goes by, the asset’s value goes up.<\/p>\n

Laws<\/strong> Here’s a quick look at the tax laws that come into play:<\/p>\n