EST2419. Putting It On & Taking It Off (Planning with No, Low, and “Negative” Basis Assets)

This presentation will discuss innovative tax basis management techniques that strip, shift, create, concentrate, and maximize basis where it can be of most benefit to taxpayers. The discussion will include: (i) maximizing and multiplying the “step-up” in basis; (ii) upstream planning and powers of appointment to create basis; (iii) using partnerships to move basis to where you want it; (iv) the upside of leverage; and (v) novel uses of grantor trusts and disregarded entities in basis management.

Learning Objectives:

• Recognize techniques that allow taxpayers to maximize the "step-up" in basis at death and move that basis to another asset.
• Determine when partnerships should avoid a section 754 election to capture and concentrate basis in other ways.
• Identify when to use powers of appointments and upstream planning to get basis from other people.
• Recognize how to use partnerships to do tax free "basis shifting."