Question for all you accountants.

[Boomyal]

When you inherit a piece of property, what is your basis in a future sale? For example a father buys a piece of property for $30k. When he dies and passes it on to his daughter it is worth 100k. Is the daughter's basis his original 30k purchase price or is it the 100k value that she inherits it at?

Other details that may or may not be pertainent, the property was held in a personal trust by the father but that trust was closed out upon his death.

The property mentioned is held in a California General Partnership (the property being its only asset) for which the daughter is one of several family partners. The example figures given above were meant to represent the value of her share of the partnership.

What say you all?

 

[dingbat]

Re: Question for all you accountants.

Just went thru the saem thing. It's the value at the time of transfer

 

[stackz]

Re: Question for all you accountants.

yep, value at transfer. also, not sure on your state laws but in SC, you will pay taxes on that value if you own any other property that is already considered primary residence. though, if claimed as primary residence, you dont have to pay taxes on anything worth less than 4.5million.

just got my paperwork on the house I inherited finished this weekend. lol.

the best thing for her to do honestly is get in touch with a lawyer that deals with this stuff. I was about to have to pay $30k in inheritance taxes until I got the lawyer and aside from the $10 deed transfer fee, I only ended up paying the lawyer $200 to get it all done properly.

 

[Boomyal]

Re: Question for all you accountants.

thanks all. It is as I thought. Just was not sure.

 

[Fishing Dude too]

Re: Question for all you accountants.

If you are selling it may be ahead to sell without transfer and take the one time tax against them if they had not sold property before.

 

[bruceb58]

Re: Question for all you accountants.

If you are selling it may be ahead to sell without transfer and take the one time tax against them if they had not sold property before.

Kinda hard to do that if the father has already died.

 

[stackz]

Re: Question for all you accountants.

Kinda hard to do that if the father has already died.

sounds like they either already worked that all out in probate court, or before he died, the father set up the partnership with the property to revert to the rest in the event of his death to avoid probate court.

I could be wrong though lol