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And the tax code that, you know, taxed them while they were alive. It's not like their net worth is pre-tax, and if it was pre-tax, that it would stay that way
by cullenking 16y ago
And the tax code that, you know, taxed them while they were alive. It's not like their net worth is pre-tax, and if it was pre-tax, that it would stay that way when capital gains tax hits when an heir sells property, etc.
- Retric 16y agoNo, if the appreciated asset was pre-tax, at their death, then their heir's get to immediately sell it without paying capital gains. If you do not have to file a federal estate tax return, then your basis in the inherited property is its appraised value on the date of passing for state inheritance or transmission taxes. Otherwise the property inherited from a descendent usually has its value or basis determined in one of the following four ways: The appraised fair market value as of the date of passing. The fair market value on the alternate valuation date if a personal representative of the estate chooses to use alternate valuation. A special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. When the land that is part of the decedent's estate is a qualified conservation easement, then it may qualify for an adjusted cost basis. http://www.money-zine.com/Financial-Planning/Tax-Shelter/Capital-Gains-Tax/ PS: This loophole still exists for the untaxed portion of an inheritance.