In article ,
 
> Hadn't the inherited wealth already been taxed?
> the income, the dividents, the capital gains, etc?
> 

  Cap gains would not have been. As I mentioned when the Estate tax goes 
away for about 30 seconds, the step-up in basis for cap gain purposes 
also goes away so the cap gains can be captured at the appopriate time, 
when the asset is sold. The other stuff has been taxed as it went along. 


> On item I came across in my research was that the asset is re-basised at the
> time of death. So the gains from the original purchase to that point could
> be taxed.
    I would have less of a problem with that as long as the basis 
changed. 


> Otherwise when the time came to sell you'd have to track down the orginal
> cost basis, which may not be available.
> 
> 
      You have to anyway. It is usually available or at least there are 
ways to figure it out and make the IRS happy. Sloppy paperwork doesn't 
mean you can get out of taxes. 
        A couple of years ago I had to figure out the basis on some 
property I inherited from my great uncle 50 years or so ago. It is 
possible.
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