Taxes... One of the two things Ben Franklin said were certain... AND when that other thing - Death - happens - there can be some tax consequences... MANY times - I joke with clients & tell them that one of the benefits of people Dying - is that their Capital Assets will get a new basis as of the Date of Death. 80% or more of the time - that new basis will be higher than the basis the decedent had. This means that if the asset is now sold there will be little or no capital gains tax... Then there is the 20%... IF you pass a capital asset to another person in the form of a GIFT - they take it at your basis... There is no possibility of a Step Up in Basis... If a piece of Real Estate or Stock is gifted & then held for a long time - by the time it is sold there may be significant built up Gains... This issue is one of the reasons why people should never lightly add their children to title or gift them property - unless they fully understand the Capital Gains Tax - Property Tax & occasionally Income Tax consequences of these transfers...
Posted on: Sat, 26 Oct 2013 01:16:37 +0000
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