7 Recommended Steps When Dealing with Carryover Basis
In a recent Forbes.com published article, by Deborah Jacobs, she recommends taking seven steps for coping with the 2010 carryover basis.
The carryover basis, for estate tax purposes, looks to what "basis" should be applied when determining appreciating assets and capital gains tax.
The basis for an appreciating asset used to be the value at the time of the grantor's death. Now, the basis is determined at the time the asset was obtained by the grantor. The change in capital gains tax that an inheritor would have to report on his or her personal income tax could be in the millions.
The seven steps below are recommended by Ms. Jacobs:
1. Have assets appraised.
2. Locate purchase records.
3. Delay selling appreciated assets.
4. Postpone distributions.
5. Extend paperwork deadlines.
6. Apply the basis allowance fairly.
7. Guard against an executor's added risks.
For more information about this article, please visit Future of the Federal Estate Tax.
For more information about estate taxes, contact our Jacksonville estate planning law firm.
