Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I just sold a painting that I inherited in 1979, for which

there is a bill of...
I just sold a painting that I inherited in 1979, for which there is a bill of sale indicating a $18K cost. Anything I can do to avoid or decrease that 28% tax rate?
Tracy in California
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
2/1/2013
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,244
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Robin D :

Hello and thank you for using Just Answer,

Robin D :

You will need to find out what the fair market value of the painting was when you inherited it. If you do not the IRS will use $0 as your basis.
When you inherited the painting you received a step up in basis, so the fair market value of the painting on the date of death for the deceased would be your basis.
You would only then pay tax on the difference in your basis and the sales price.

Robin D :

Perhaps you can get get an appraisal from a gallery or art expert that would assist you. If you received any paperwork when you inherited the painting may be able to assist you also.

Robin D :

If the $18,000 is the only amount you have and the date is with in a year of the date of death for the deceased then you could use the bill of sale for your basis.

Robin D :

I sincerely XXXXX XXXXX information is helpful.

Customer:

okay...i have original letter from gallery dated 1976 that states the price of 18K, three years prior to granddad's death in 1979. sounds like i can use that 18K as basis plus another three years (till his death in 1979) during which the painting's value likely appreciated. famous painter and so i have printed out auction results starting in 1987--first year that shows an online auction result for him--up through 2013. his work has appreciated in value all the way through. i can also include in that basis the cost of refurbishing back in 1986 as well, right?

Robin D :

Yes you can.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,244
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,244
16,244 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. 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

4,338 satisfied customers

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

Robin D.

Robin D.

Senior Tax Advisor 4

16,244 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
Looking for tax law advise, California, I owe State and
I owe State and Federal Taxes for 2015 & 2016 and have worked out a monthly payment plan with the State but Federal is asking for a $6,100 lump sum by 1/28/18 before working out a monthly payment plan. If I cannot come up with the lump sum they will file a Notice of Federal Tax Lien that will be reported to the credit agencies. Is there any way to negotiate this? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How are taxes (federal and California) calculated for
How are taxes (federal and California) calculated for bitcoin transactions? I had a few transactions of the following types: 1. Buy bitcoins 2. Sell bitcoins 3. Send bitcoins to 3rd partyAll these tra… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My question is how to change the tax rate on the Panasonic
My name is ***** ***** My question is how to change the tax rate on the Panasonic 7500? thank you … read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
WHAT IS 73-10? California. IRS in my credit report
WHAT IS 73-10? JA: What state are you in? It matters because laws vary by location. Customer: california JA: Has anything been filed or reported? Customer: IRS in my credit report JA: Anything else yo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,798 satisfied customers
Is there inheritance tax in California. I cousin of my mom
I cousin of my mom died in California. He did not have a will. So we are heirs since my mom has already passed away. Do we have to pay taxes on the funds that we received? … read more
Carter McBride
Carter McBride
LLM
252 satisfied customers
Will the new tax rates for businesses apply to sole
Will the new tax rates for businesses apply to sole proprietor medical practices? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I received a call from the IRS stating I owed past taxes. In
I received a call from the IRS stating I owed past taxes. In order to correct this matter and not go to court I was instructed to do the following. This came from a chief investigator. I was told to g… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I'm in the state of Florida and required to sales tax on
I'm in the state of Florida and required to sales tax on Fabrication - how do I determine what percentage of a manager's salary is considered taxable under the fabrication rule … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Assuming a Medicare tax rate of 1.45% and monthly gross
Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
How is the California state income tax calculated? I have
How is the California state income tax calculated? I have approximately $55,000 of income before deductions. I am married filing jointly.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
How much taxes do California residents pay on out of state
How much taxes do California residents pay on out of state lottery winnings … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,798 satisfied customers
Can the California state franchise tax board put a lien on
can the California state franchise tax board put a lien on social security ? … read more
abci168
abci168
Principal
27 satisfied customers
I just received a letter from the state of California
I just received a letter from the state of California franchise tax board it says I've been accessed a $200.50 penalty pursuant to section 19141 of the administration of franchise in income tax law fo… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
What are the taxes rates 2016 for term gains in irrevocable
what are the taxes rates 2016 for long term gains in irrevocable trusts … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
I own a business in Kentucky and owe state sales tax to the
I own a business in Kentucky and owe state sales tax to the state of Kentucky. Can the state of Kentucky place a lien on my home in Pennsylvania jointly owned by me and my wife … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 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 EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,798 satisfied customers
Has the tax rate on an inheritance for non residents
Has the tax rate on an inheritance for non residents recently been changed? Iv'e been told it is now 5% and no longer 30%.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,798 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