@mjwoo94015 wrote:
.....the Estate does not have to be a taxable estate (as long as the asset is included in the gross estate) to get the step up in basis.
Yes, I understand. I was only trying to point out the fact that there was no such thing as a taxable estate in the 2010 tax year, which was the reason I referred to that tax year as the "carry-over basis year" and without the prior Section 121(d)(11) provision, there would be absolutely no relief for a primary residence that was acquired from a decedent.
The upshot, or yield, here is that there never was both a stepped-up basis and a home sale exclusion for property acquired from a decedent.
