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Posted by joetaxpayer on March 2, 2008, 5:19 pm
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Harlan Lunsford wrote:
>> I thought pub 551 was fairly clear that in the situation where a
>> property was acquired by gift and at the time the FMV exceeded the
>> donor's basis that the donor's basis was passed to the recipient of
>> the gift.
>>
>> However, one of the siblings has a tax preparer telling them that the
>> basis should be the FMV on the date of the gift. I don't agree and my
>> client (a different sibling) obviously wants to use the FMV suggested
>> by the other preparer.
>
>
> You may disagree with that other tax preparer in good conscience, too.
Basis is passed along with a gift (unless FMV dropped, you can't pass
along a built-in loss). Only death (that I know of) can create a step up
in basis. Which is why the "give the house to the kids for a buck" route
is usually the wrong way to go. The kids could have chipped in to pay
for an irrevocable trust, which would have provided some protection, and
allowed the step up upon death.
JOE
www.blog.joetaxpayer.com
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Posted by removeps-groups@yahoo.com on March 2, 2008, 8:33 pm
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> Basis is passed along with a gift (unless FMV dropped, you can't pass
> along a built-in loss). Only death (that I know of) can create a step up
> in basis. Which is why the "give the house to the kids for a buck" route
> is usually the wrong way to go.
Out of curiosity, when the estate tax is repealed in 2010, would we
still have this step-up of basis?
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2007) - All rights reserved. >>
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Posted by Dick Adams on March 2, 2008, 9:09 pm
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>> Basis is passed along with a gift (unless FMV dropped,
>> you can't pass along a built-in loss). Only death (that
>> I know of) can create a step up in basis. Which is why
>> the "give the house to the kids for a buck" route is
>> usually the wrong way to go.
> Out of curiosity, when the estate tax is repealed in 2010,
> would we still have this step-up of basis?
As it sits now, the answer is probably yes, but
Congress may change that.
Those who thought taxation without representation
was tyranny ought to see what it is like with
representation,
Dick
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by joetaxpayer on March 2, 2008, 9:56 pm
Please log in for more thread options Dick Adams wrote:
>
>
>
>>>Basis is passed along with a gift (unless FMV dropped,
>>>you can't pass along a built-in loss). Only death (that
>>>I know of) can create a step up in basis. Which is why
>>>the "give the house to the kids for a buck" route is
>>>usually the wrong way to go.
>
>
>>Out of curiosity, when the estate tax is repealed in 2010,
>>would we still have this step-up of basis?
>
>
> As it sits now, the answer is probably yes, but
> Congress may change that.
>
> Those who thought taxation without representation
> was tyranny ought to see what it is like with
> representation,
I am packing for a trip, so can't research this too much, but I
understood the downside to the 2010 repeal is all stepped up basis is
lost. I'm sure someone will have a well documented answer before my
return. But the 2010 was not the free lunch it appeared to be.
JOE
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Arthur Kamlet on March 3, 2008, 12:03 am
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>>> Basis is passed along with a gift (unless FMV dropped,
>>> you can't pass along a built-in loss). Only death (that
>>> I know of) can create a step up in basis. Which is why
>>> the "give the house to the kids for a buck" route is
>>> usually the wrong way to go.
>
>> Out of curiosity, when the estate tax is repealed in 2010,
>> would we still have this step-up of basis?
>
>As it sits now, the answer is probably yes, but
>Congress may change that.
The law as it is now, and I agree it will almost surely
change, allows step up for the first $1 million of assets,
and the executor gets to pick which assets get the step up.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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