Real asset depreciation and basis step-up can completely shield generational taxes
Michel Del Buono · CIO of Marc & Ben's Multi-Family Office: SpaceX IPO, Anthropic & OpenAI · Sourcery with Molly O'Shea · May 22, 2026 · at 49:25
Michel Del Buono, CIO of a16z Perennial, explains the tax mechanics of combining depreciation deductions during life with step-up in basis at death for real assets.
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“If structured properly, you can offset Almost all the income from the property. And then because of something called a step up in basis, a death when you sell that asset after you pass away, you don't owe tax on that either. So you, along the way, all the income you get from the asset doesn't pay tax because you got the depreciation credit, and then normally if you sell it at the end, you pay a ton of tax, right? But if you pass away and hand it to your heirs, they get a new basis, a new price for the asset that's gone up, so they can sell it with no tax.”
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