Farah Modarres (J.D. Candidate 2022, Loyola-L.A.), Note, Repealing Stepped-Up Basis and Endorsing Gutman's Proposal to Tax Capital Gains at Death, 55 Loy. L.A. L. Rev. 895 (2022): 

The “stepped-up basis” rule allows unrealized capital gains to escape income taxation when an individual passes an asset at death. Congress attempted to repeal the tax loophole in recent years, but political disputes concerning its replacement delayed any potential changes. This Note examines the two frequently considered options to replace steppedup basis: carryover basis and taxing capital gains at death. I argue that Congress should implement a system taxing capital gains at death. Specifically, I endorse the framework introduced by tax scholar Harry L. Gutman to tax capital gains at death as it properly addresses liquidity and valuation concerns often raised by opponents. 

Gutman’s proposal is the most politically viable option to replace stepped-up basis, and it will ensure unrealized capital gains are appropriately subject to income tax.