Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

A person inherited a life estate in farm land and paid inheritance

Customer Question
tax on the FMV of...
A person inherited a life estate in farm land and paid inheritance tax on the FMV of the life estate. Can she write off the FMV over his estimated life expectancy?
Submitted: 5 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 35 minutes by:
12/2/2011
Tax Professional: Lev, Tax Advisor replied 5 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,151
Experience: Taxes, Immigration, Labor Relations
Verified

Hi and welcome to Just Answer!
Inheritance taxes are added to the basis of the property.
The basis of inherited property is generally a fair market of the property at the time the decedent died.
However if the decedent died after Dec 31, 2009 - the a different law applies - the basis would be the same as decedent had - but may be increased up to the fair market value - but such increase may not be more than $1,300,000.

The basis may not be deducted estimated life expectancy of the beneficiary.
However when the property is sold - the basis will reduce the capital gain.

The capital gain = (selling price) - (basis) - (selling expenses)

Let me know if you need any help.

Ask Your Own Tax Question
Customer reply replied 5 years ago
The question was whether or not the FMV of an inherited life estate can be deducted for income tax purposes over the the life of the life estate beneficiary.
Tax Professional: Lev, Tax Advisor replied 5 years ago

The FMV of an inherited life estate MAY NOT be deducted for income tax purposes.

There is no such law to allow the deduction as you stated.

 

Please feel free to ask if you need any clarification.

 

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,151
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,151
30,151 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My wife inherited a piece of rental property from a
My wife inherited a piece of rental property from a revocable trust that her parents had set up after her father and brother died her mom did an amendment that made her trustee and sole heir. Her mom … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Does DC have an inheritance tax for DC residence who receive
Does DC have an inheritance tax for DC residence who receive an inheritance from a residentof California? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
Under the IRC, a taxpayer who inherits property gets an
Under the IRC, a taxpayer who inherits property gets an automatic, income-tax-free, step-up in basis for that asset. That is, the heir uses the property's value on the deceased's date of death (or 6 m… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is the sale of customer list a capital gain or ordinary income?
Is the sale of self-created intangibles, such customer lists, digital files, web sites, etc subject to capital gain or ordinary income treatment?… read more
Lev
Lev
Tax Advisor
30,151 satisfied customers
What is the tax schedule on inherited Stretch I.R.A for
what is the tax schedule on inherited Stretch I.R.A for children after their inheritance while they are still teenagers, before they reach 70 years of age? … read more
Lev
Lev
Tax Advisor
30,151 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
Lev
Lev
Tax Advisor
30,151 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
Lev
Lev
Tax Advisor
30,151 satisfied customers
I sold a rental property at a loss (no capital gains);
I sold a rental property at a loss (no capital gains); however should I pay the $133,000 on the principal of my house I owe 166,000 at 2.8% or buy another rental? … read more
Lev
Lev
Tax Advisor
30,151 satisfied customers
My son inherited a property in Romania from his ant who was
My son inherited a property in Romania from his ant who was German citizen. Does he has to pay inheritance taxes to Germany for the property inherited in Romania, because she was German citizen?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I have inherited a property in California that is currently
I have inherited a property in California that is currently in escrow. How will I be taxed for the money I make on the sale of the property? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
We have two parties is sale of property they inherited .a
We have two parties is sale of property they inherited .a court based the amount at tax assessment of 156000 at their mom's death value was 84000 which is a 72000 gain. At a hearing a judge ordered a … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
I have remarried and have property and inheritance property
Hello, I have remarried and have property and inheritance property that I want to insure goes to my children and not my spouse. Should have done prenup but what are my options now? Married 2 years. … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
We need to know what is the inheritance tax for a real
We need to know what is the inheritance tax for a real estate property owned by a foreign individual, in the State of Florida with a value less than US$ 500.000?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
Sold property in Maine that was an inheritance. Live in
Sold property in Maine that was an inheritance. Live in Ohio. What tax forms will dI recieve from irs and what information will be on forms. Wondering if inheritance will put me in higher tax bracket… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I now have another question about inheritance tax in the
I now have another question about inheritance tax in the State of Ohio. Me and 2 of my siblings will be receiving an inheritance from an irrevocable trust (not sure that matters) before the end of the… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
Referring to capital gains and inheritance laws in Peru: We
Referring to capital gains and inheritance laws in Peru: We will be inheriting some properties from my mother in Peru which we intend to sell within the year. Since we inherited the property at it's c… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
On what schedule of the Pennsylvania Inheritance Tax Return
On what schedule of the Pennsylvania Inheritance Tax Return do I list a piece of real estate where the deed listed the decedent as having a life estate in the property and his brother and daughter as … read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
DO YOU PAY INHERITANCE TAXES ON LIFE ESTATES, PENNSYLVANIA,
WE HAD ESTATE PROBATED. EVERYTHING IS WITH THE LAWYER. AN ESTIMATED TAX WAS SENT IN WITHIN THE FIRST 3 MONTHS. NOTHING ON THE PROPERTY YET. LAWYER SAID WE COULD DO CAPITAL GAINS, 3 SISTERS ARE ON DEED. NOW HE SAYS WE NEED TO PAY INHERITANCE TAX ON THE REST. WE THINK IT IS STUPID TO PAY 15 % ON CAPITAL GAINS AND 4 1/2% INHERITANCE ON THE REST. WHY WOULDN'T YOU JUST PAY INHERITANCE TAX ON ALL OF IT. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x