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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 40001
Experience:  Texas lawyer for 30 years in Estate law
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I am trying to figure out federal estate taxes on an

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I am trying to figure out federal estate taxes on an inheritance. What determines the value of an estate for real estate? Fair market value, date of death appraisal, other? Where would I find this in a Trust accounting. Thank you in advance for your help.

Hi and welcome to JA.Ray here to help you tonight.The current estate tax limits are $5,450, 000 per person so if you are not over this amount no taxes are due.Date of death appraisal would be the valuation for tax purposes.Again unless you arr over the $5 million figure above no federal taxes due.

I appreciate the chance to help you tonight.Thanks again.


Customer: replied 1 year ago.
Estate is in CA. We are over that 5 million figure. Estate value =7 via date of death appraisals. What is our Federal estate tax? Is it the beneficiaries federal bracket?Are we also subject to capital gains tax if we sell the inherited property as well? And is that tied to our federal and CA state bracket? For example, estate valued at $7 via date of death appraisals. Beneficiaries owe estate tax of $7 -$5,450,000. Beneficiaries then sell properties valued at $7 for $9. Do they also now owe cap gains? Ouch!
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ATRA also increased the tax rate on estates in excess of the exemption amount from 35% to 40%.

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There is capital gains on the difference between when the property was acquired and when it sells.Each person would owe their share based on the amount they inherited.

Capital gains is based on the amount of gain and their bracket..

Regular and capital gains tax rates for 2015

Ordinary income rate /Long-term capital gain rate /Short-term capital gain rate





You may want to have a CPA here involved to see what the tax hit will be , it will be significant.

As you can see from above the estate tax above the exemption is 35-40% of the amount.It is significant.Your CPA here may be able to help you with some offsets/deductions through planning for 2016.

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