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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Decedent died in 1995. She owned common stock. Nothing was

Customer Question

Decedent died in 1995. She owned common stock. Nothing was ever done to probate her estate. The stock has appreciated considerably. The estate administrator has had the stock issued to the estate,as owner. When the individual beneficiaries of the estate sell their stock, how will it be taxed? Also, what is the NY Statue of Limitations regarding estate liabilities? Nothing has been filed for 20 years.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!When shares are sold - the capital gain is calculated as (selling price) MINUS (basis).The broker will send from 1099B reporting gross proceeds from the sale - and that will be treated as the sale price.That form 1099B will be issued to the estate or to beneficiaries - depending whose name is ***** ***** the account at the time of sale. The basis is determined specifically for inherited assets - as stepped up basis - equals to the fair market value (FMV) at the time the decedent passed away.If that is a listed stock - it woudl be closing market price on the day the decedent passed away back in 1995.
Customer: replied 1 year ago.
And what is your answer to the statute of limitations question?
Expert:  Lev replied 1 year ago.
For estate tax purposes - the value of the estate at the time of death is considered.For filing requirements - see here - http://www.tax.ny.gov/pdf/2008/et/et85i_708.pdfhttp://www.tax.ny.gov/pdf/current_forms/et/et90i.pdfNew York State Tax Law generally places a three-year statute of limitations on NY DOT rights to assert additional tax due (generally, three years after your return was filed), beyond which they may not assess tax above what were reported on the return.The statute of limitations does not apply, however, for any period during which a taxpayer failed to file a return.So - if no returns were filed - the statute of limitation woudl not apply to that situation.In this case - I suggest to verify if filing were required.