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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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The step up in basis of the decedents stock totaled $206,000

Resolved Question:

The step up in basis of the decedent's stock totaled $206,000 at her death in August 2009. The stock was sold at a value of roughly $321,000. The remainder of the estate is in real estate valued at approximately $200,000 and currently earns no income (i.e. rental property). What is the capital gains tax on the gain?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Hello JA Customer,


If the real estate has not yet been sold, then there is no gain at this point, so no tax would be due.


If the stocks were sold for $321,000 and had a stepped up basis of $206,000, there is a long term capital gain of $115,000. That gain is subject to a maximum tax rate of 15% or a total of $17,250.


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Thank you JA Customer



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