Home Page link  

Stock-Estate Taxes ?

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Stock-Estate Taxes ? Shay L 04-18-2008
Posted by Shay L on April 18, 2008, 6:14 pm
Please log in for more thread options
 Can someone help me with this? Is it true that a 700,000 Estate does not
have to file an Estate Tax (706)? I know a 1041 has to be filed for
earnings in the Estate.

What about the tax on the stock gains or do they pass at FMV to the
Estate. Does it make a difference tax wise if the stock are sold by the
Estate or the certificates are transferred?

Thanks for any answers you can give me.

Shay

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by Ira Smilovitz on April 19, 2008, 12:59 pm
Please log in for more thread options
> Can someone help me with this? Is it true that a 700,000 Estate does not
> have to file an Estate Tax (706)? I know a 1041 has to be filed for
> earnings in the Estate.
>
> What about the tax on the stock gains or do they pass at FMV to the
> Estate. Does it make a difference tax wise if the stock are sold by the
> Estate or the certificates are transferred?
>
> Thanks for any answers you can give me.
>
> Shay

No Federal Estate Tax Return is required for a $700K estate, but state
filing thresholds may be lower. Stock gains are measured relative to the FMV
of the stock on the date of death (or alternate valuation date). They are
long-term by definition and it size of the gain/loss is the same whether
they are sold by the estate or the beneficiaries. (Note however, that the
size of the tax liability may vary depending on who makes the sale.)

Ira Smilovitz

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by Jon Gallo on April 19, 2008, 3:14 pm
Please log in for more thread options

>> Can someone help me with this? Is it true that a 700,000 Estate does not
>> have to file an Estate Tax (706)? I know a 1041 has to be filed for
>> earnings in the Estate.
>>
>> What about the tax on the stock gains or do they pass at FMV to the
>> Estate. Does it make a difference tax wise if the stock are sold by the
>> Estate or the certificates are transferred?
>>
>> Thanks for any answers you can give me.
>>
>> Shay
>
> No Federal Estate Tax Return is required for a $700K estate, but state
> filing thresholds may be lower. Stock gains are measured relative to the
> FMV of the stock on the date of death (or alternate valuation date). They
> are long-term by definition and it size of the gain/loss is the same
> whether they are sold by the estate or the beneficiaries. (Note however,
> that the size of the tax liability may vary depending on who makes the
> sale.)
>
> Ira Smilovitz

As a minor clarification to the above, you would use date of death values
to determine gains since the alternate valuation date is only available if
it
reduces the estate tax and hence not applicable for an estate valued below
the estate tax exemption, which is currently $2 million.

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by Gil Faver on April 19, 2008, 4:11 pm
Please log in for more thread options

>
>>> Can someone help me with this? Is it true that a 700,000 Estate does not
>>> have to file an Estate Tax (706)? I know a 1041 has to be filed for
>>> earnings in the Estate.
>>>
>>> What about the tax on the stock gains or do they pass at FMV to the
>>> Estate. Does it make a difference tax wise if the stock are sold by the
>>> Estate or the certificates are transferred?
>>>
>>> Thanks for any answers you can give me.
>>>
>>> Shay
>>
>> No Federal Estate Tax Return is required for a $700K estate, but state
>> filing thresholds may be lower. Stock gains are measured relative to the
>> FMV of the stock on the date of death (or alternate valuation date). They
>> are long-term by definition and it size of the gain/loss is the same
>> whether they are sold by the estate or the beneficiaries. (Note however,
>> that the size of the tax liability may vary depending on who makes the
>> sale.)
>>
>> Ira Smilovitz
>
> As a minor clarification to the above, you would use date of death values
> to determine gains since the alternate valuation date is only available if
> it
> reduces the estate tax and hence not applicable for an estate valued below
> the estate tax exemption, which is currently $2 million.

Under what circumstance can an alternate valuation date be used to reduce
the estate tax? Or am I misunderstanding what has been said here?

========================================= MODERATOR'S COMMENT:
As the poster said, AVD applies only when it reduces the Federal
Estate Tax on Form 706, and is applied to all or none of the property.

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by dpb on April 19, 2008, 4:15 pm
Please log in for more thread options
Shay L wrote:
> Can someone help me with this? Is it true that a 700,000 Estate does not
> have to file an Estate Tax (706)? I know a 1041 has to be filed for
> earnings in the Estate.
>
> What about the tax on the stock gains or do they pass at FMV to the
> Estate. Does it make a difference tax wise if the stock are sold by the
> Estate or the certificates are transferred?

First of all have to satisfy the terms of any will and/or probate as far
as the disposition of assets.

Note that under current law the basis in the stocks would step-up to FMV
if passed on to whoever is to inherit whereas the estate would have the
basis at which they were purchased. Since the estate is below the level
of (federal) liability, it would seem from afar prudent to pass them on
rather than selling from simply that pov. Of course, the estate may
need revenue for final expenses and so on or there may be other
confounding issues, not the least of which is the State.

--

========================================= MODERATOR'S COMMENT:
If the sale was by the estate the stepped up value is used. This
message is accepted for posting in order to confirm/disaffirm the
information stated.

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Live in Mass starting a new Job in Ct TAXES TAXES January 11, 2008, 12:30 pm
Question about 529 account and state / federal taxes and federal gift taxes July 23, 2007, 1:16 am
TX LLC Taxes January 13, 2007, 2:31 am
Re: Taxes February 19, 2007, 2:39 pm
Re: Taxes February 27, 2007, 4:14 pm
Job and Taxes June 8, 2006, 2:22 pm
Taxes after Death January 26, 2007, 5:58 am
taxes due CA or Nevada April 9, 2007, 3:29 am
Taxes and Americans June 5, 2007, 3:20 pm
AMT - capitalize taxes? June 8, 2007, 1:21 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap