The term "stepped up basis" is kind of a misnomer because as you point out, basis can go both up and down, meaning essentially basis is just "reset". This means you're better off selling losing stocks before death so you can take advantage of the tax loss. At death the losing and winning stocks are all reset to their present value.
When the car goes from $400 to $600,000 in probate, will the estate owe capital gains on the car somehow, or does it get the new basis "for free"?
No there are no taxes due on this part of the gain (assuming the overall estate is small enough to be exempt from estate taxes) - that's why the "step-up" in basis is so powerful.
It's also why "giving" assets ...
You’ll be relieved to know you don’t pay income tax on gains.
You pay just Capital Gains Tax (CGT) on gains, and income tax on dividend income (which is subject to its own thresholds).
However, do note that the rate of CGT that you pay () is dependent on your income tax bracket in the tax year in question (the relevant date being the date you ...
If you moved your cyrtpocurrency to Coinbase, no one but you has any idea how much you paid for it, or even when you originally acquired it. As such, Coinbase won't be able to report the cost-basis to the IRS.
If you move cash into Coinbase and then buy and sell crypto, they will report cost-bases to the IRS, and report it to you in the Form 1099 family.
You can do a rollover or even better a trustee-to-trustee transfer. In a rollover the check goes through you, and you have 60 days and you can only do one per year. Contact the new company for help.
According to the IRS:
Generally, a rollover is a tax-free distribution to the taxpayer of
cash or other assets from one HSA ...