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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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estate settlement 1,200,000 stock value with a tax base of

Resolved Question:

estate settlement: 1,200,000 stock value with a tax base of 18,000. In 2010 capital gains apply with no estate tax. $1,300,000 exemption is applied to house sale separately.
Question: I understand that each heir(3) is liable personally for capital gains but if the
stock shares are transferred rather than sold do they still have to pay capital gains tax. Can they retain the stock and and pay capital gains when they sell stock ( at the same
tax basis of the deceased. Hopefully congress will make this question moot, but we must
deal with present law. Your help may prevent a family argument.
Submitted: 6 years ago.
Category: Tax
Expert:  Stephen G. replied 6 years ago.

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

 

 

We're on thin ice here & i wouldn't advise that any decisions be made, based upon what the law is now, particularly since it isn't likely to apply.

 

They heirs wouldn't have any capital gains tax to pay until they sold the stock. They inherited the stock, there was no sale or exchange.

 

Based upon what we know now, the decedent's basis in theory would "carryover" to the heirs.

 

 

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