Why Is It Generally Undesirable to Pass Property by Death

question 73

Essay

Why is it generally undesirable to pass property by death when its fair market value is less than basis?

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Definitions:

Resource Allocation

The process of assigning and managing assets in a manner that effectively supports an organization's strategic goals.

Factor Markets

Marketplaces where services of the factors of production (like labor, capital, and land) are bought and sold.

Voluntary Exchange

A transaction where both parties agree to trade goods or services by choice.

Perfect Competition

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect prices.