TAX LAW

From David A. Handler of Kirkland & Ellis LLP, we have this update: Basis of Real Estate Acquired from Exercise of Option Stepped-Up. The will of a taxpayer's mother provided the taxpayer with an option to purchase the mother's house for a stated price an option the taxpayer exercised. Relying on Rev. Rul. 67-96, 1967-1 C.B. 195, the Internal Revenue Service concluded in Private Letter Ruling 200340019