Thank you. However, I need to clarify the question with additional facts. In this case, two years have passed, and the mutual fund has increased in value by $90,000. Therefore, it is my understanding that an heir that takes the cash now will pay capital gains back to the date of death stepped up basis, and the heir that takes in-kind will escape tax liability, but when s/he sells his/her 1/15th portion, s/he will be liable for the capital gains, not from the date of the transfer, but from the valuation back to the date of death stepped-up basis. Am I correct? Also, I am aware that we can establish the valuation at 6 months post death, which would remove $30,000 of the gain. If you have IRC numbers for these issues, that would be most helpful. Thank you and Happy New Year to the Turbo Tax community!!!
