samingeorgia Posted February 24, 2010 Report Share Posted February 24, 2010 I was discussing this with a colleague today. Assume that Zelda Gotrocks dies with the following: CD's $ 500,000; Residence $ 195,000; land $ 425,000. No spouse, no debts, minimal final expenses. Zelda's niece, her executor, get appraisals on the land. Assuming that the exclusion amount is $ 2,000,000, is there any point or requirement to file a 706 to establish basis? Note: All figures are hypothetical. Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 24, 2010 Report Share Posted February 24, 2010 I see no need to file an estate tax return as basis for everything appears to have documentation for later tax purposes. I assume there have been no life time gifts in excess of annual exclusions, beneficiary of life insurance, retirement plan accounts, or other items that must be included in the estate assets. Quote Link to comment Share on other sites More sharing options...
Linda Mathey Posted March 4, 2010 Report Share Posted March 4, 2010 I was discussing this with a colleague today. Assume that Zelda Gotrocks dies with the following: CD's $ 500,000; Residence $ 195,000; land $ 425,000. No spouse, no debts, minimal final expenses. Zelda's niece, her executor, get appraisals on the land. Assuming that the exclusion amount is $ 2,000,000, is there any point or requirement to file a 706 to establish basis? Note: All figures are hypothetical. I agree no need to file 706 but if you live in a state like I do, the threshold for filing the state inheritance return is much lower and that would document the basis. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted March 5, 2010 Report Share Posted March 5, 2010 besides the Unified Credit for a person dying in 2009 is $1,455,800 which exempts $3.5 million not $2 mil Quote Link to comment Share on other sites More sharing options...
LindaB Posted March 5, 2010 Report Share Posted March 5, 2010 besides the Unified Credit for a person dying in 2009 is $1,455,800 which exempts $3.5 million not $2 mil And for someone dying in 2010 the estate tax, but not gift tax, is repealed. And also for 2010 the stepped-up basis for inherited property is repealed! They are scheduled to be reinstated after 2010 unless Congress acts. Quote Link to comment Share on other sites More sharing options...
Kea Posted March 5, 2010 Report Share Posted March 5, 2010 I thought the step-up stayed repealed (unless they change it). I would hope that's only repealed for one year. It's hard enough to get the basis from the owner. It will be next to impossible to get the basis from the heirs. They will have no idea what the decedent paid! Quote Link to comment Share on other sites More sharing options...
joelgilb Posted March 5, 2010 Report Share Posted March 5, 2010 I thought the step-up stayed repealed (unless they change it). I would hope that's only repealed for one year. It's hard enough to get the basis from the owner. It will be next to impossible to get the basis from the heirs. They will have no idea what the decedent paid! Well it's our government at work trying to keep us employed! Got to love them for that... Quote Link to comment Share on other sites More sharing options...
joelgilb Posted March 5, 2010 Report Share Posted March 5, 2010 In fact this kind of reminds me of a kids song. Goes something like this... Sung to the tune of Knees up Mother Brown: Fees up Mother Brown Fees up Mother Brown To your Accountant, you must go Ee-aye, Ee-aye, Ee-aye-oh If I catch you not paying I'll levy what you have left Fees up, Fees up Got to keep the fees up Fees up Mother Brown! Quote Link to comment Share on other sites More sharing options...
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