Attorney Question: Iowa Estate Law
Let’s try this one more time……
I inherited some grain inventory from my father who was a farmer. I understand that I do not receive a step up in basis because the grain was business inventory. (correct me if my wrong) Who pays the tax on the grain, at what rate, and when is it paid?
Decedents date of Death: January 12, 2012
Gross Estate Value: 5.8 million
The estate will pay tax on all assets in excess of 5.1 million later this month.
Questions with regard to the grain inventory:
Do I pay income or any other tax on the grain inventory when it is inherited / sold?
Does my deceased father pay tax on the grain inventory on his last return filed next year?
Can you provide a tax link to confirm this?
(Let’s ignore the capital gains tax and everything else for the sake of simplicity.)