@NCperson wrote:
....remember when you die, all your investments are 'stepped up' to market value based on the price of each security on the date of death. So there is no value to the loss carry forward at that point....
I realize that you were trying to simplify the rules, but there is certainly value lost to the extent of the total unused capital loss carryover that essentially disappears after death and the investments are marked to their fair market value on the date of death regardless of whether there is an unused loss carryover or not.
Although we always say "stepped-up", it also works the other way (i.e., stepped-down when the decedent's cost basis was higher than the value on the date of death).
