Discussion:1031 Exchange
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| Revision as of 02:58, 15 November 2005 Tdoyle (Talk | contribs) (New Discussion) ← Previous diff |
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| {{ForumNewPost|UserID=Lisa|UserName=Lisa|Date=10 November 2005|Text=A taxpayer has 100% ownership in property he recieved in a like-kind exchange. When taxpayer dies the spouse inherits the property and receives the FMV as basis. When the spouse receives the FMV basis, does this eliminate the deferred gain that resulted from the like-kind exchange?}} | {{ForumNewPost|UserID=Lisa|UserName=Lisa|Date=10 November 2005|Text=A taxpayer has 100% ownership in property he recieved in a like-kind exchange. When taxpayer dies the spouse inherits the property and receives the FMV as basis. When the spouse receives the FMV basis, does this eliminate the deferred gain that resulted from the like-kind exchange?}} | ||
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| + | {{ForumReplyPost|UserID=Snooks|Date=19 November 2005|Text=It is my understanding that the inherited property gets a step up in basis to FMV at the date of death or the alternative valuation date (if elected by the estate). The theory, as I undertstand it, is the assets will be taxed in the estate (if the estate is large enough). If there is no estate tax due, then you are correct. The unrealized gain will go untaxed. }} | ||
Revision as of 16:11, 19 November 2005
Discussion Forum Index --> Tax Questions --> 1031 Exchange
| 10 November 2005 | |
| A taxpayer has 100% ownership in property he recieved in a like-kind exchange. When taxpayer dies the spouse inherits the property and receives the FMV as basis. When the spouse receives the FMV basis, does this eliminate the deferred gain that resulted from the like-kind exchange? | |
| 19 November 2005 | |
| It is my understanding that the inherited property gets a step up in basis to FMV at the date of death or the alternative valuation date (if elected by the estate). The theory, as I undertstand it, is the assets will be taxed in the estate (if the estate is large enough). If there is no estate tax due, then you are correct. The unrealized gain will go untaxed. | |
