Origin: Ordinarily, capital gains are taxed at the time appreciated property is transferred. However, no tax is imposed on a capital gain when appreciated property is transferred at death. The appreciation that accrued during the lifetime of the transferor is never taxed as income. Comment: See also item 1.106
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2021
FY2022
FY2023
FY2024
FY2025
Personal Income Tax
Exclusions from Gross Income
1.022
Nontaxation of Capital Gains at Death
Ordinarily, capital gains are taxed at the time appreciated property is transferred. However, no tax is imposed on a capital gain when appreciated property is transferred at death. The appreciation that accrued during the lifetime of the transferor is never taxed as income. Comment: See also item <a href="/tax-expenditure-budget/personal-income-tax/deferrals-of-gross-income/1-106">1.106</a>
IRC §§ <a href="https://www.law.cornell.edu/uscode/text/26/1001" target="_blank">1001</a> and <a href="https://www.law.cornell.edu/uscode/text/26/1014" target="_blank">1014</a>
796.4
789.4
701.8
766.7
837.6
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