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Posted by sedrickgm on February 5, 2008, 8:20 pm
Please log in for more thread options > firenze5...@gmail.com wrote:
> >> Securities, as all estate assets, are valued at market value on
> >> the date of death. If these are publicly traded securities the
> >> value will be pegged at the price they were traded at on the date
> >> of death. If you sell them low you will not reduce the tax.
>
> > Somehow in my notes the attorney mentioned ( twice,) that it would
> > be better if I were to sell the stocks at the lower price That the
> > (loss) could be used on the form 706 I am confused and
> > guess I had better wait for his return.
>
> I hate to say this, but when it comes to tax strategy listen to your
> accountant, not your attorney.
>
> There is a thing called the alternate valuation date. The estate can
> elect to have the estate valued either on the date of death or on the
> date six months later. It's generally only better to use the alternate
> date if the entire economy has taken a dive and all the property is, in
> the aggregate, worth less.
>
> To get the lower valuation the property only needs to be owned on the
> alternate date. It does not need to be sold.
>
> If there's actually been a loss on the securities, they can be sold and
> the loss would probably be taken on the 1041, not the 706.
>
> Others who know better will correct me if I'm wrong (I'm an estate
> planning and tax attorney who doesn't do returns), but I think either
> you misunderstood or your attorney gave you bad advice.
>
> Stu
>
> --
> << ------------------------------------------------------- >>
> << 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 >>
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> << ------------------------------------------------------- >>
Stu,
Thanks. I think we had better hire an accountant. Our attorney who is
also acting as our accountant
may not be well versed in this issue. I asked my brother who was also
at the meeting w/ the att'y
and he also recalls the sell low advice. It may be because the dod of
the decedent occurred when the
market was at an all time high.
K
--
<< ------------------------------------------------------- >>
<< 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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