[WSBARP] Capital gains and probate

[Julie Martiniello]

The step up in basis occurs at the death of the owner automatically,
regardless of whether the property is transferred, sold, or never touched.
I require the PR to get an appraisal or BPO on the property as soon as
possible after death, unless they are listing it for sale right away. This
establishes the date of death value and gives you the market value (new
basis). The accountant will be thankful for the appraisal when the property
is eventually sold. Whether the property is sold from the estate or from
the heir after it is transferred to him does not affect the basis. At least
this is my understanding and that of my CPA.  So in short, I think you are
correct!

On Fri, Jan 10, 2020 at 10:29 AM Jim Doran <jim at doranlegal.com> wrote:

> Listees:
>
> A typical scenario.  Homeowner dies and has no Will.  There is only one
> heir, so no problem there.  The question is about capital gains.  It is
> easiest to leave the real property in the estate under the decedent's name
> until it sells and then have the Personal Representative issue a deed to
> the buyer.  However, the very savvy heir has asked me this question.  Does
> the stepped-up basis occur if we hold the property in the estate for sale
> or do we need to transfer the property to the heir and then have her sell
> it?
>
> I think the stepped-up basis occurs either way, but I am not sure.  Help.
>
> Jim Doran
>
> James R. Doran
> Attorney at Law
> 100 E. Pine Street -  Suite 205
> Bellingham, WA 98225
> (360)393-9506
> jim at doranlegal.com
> www.doranlegal.com
> ***Disclaimer: Please note that RPPT listserv participation is not
> restricted to practicing attorneys and may include non-practicing
> attorneys, law students, professionals working in related fields, and
> others.***
>
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp



-- 
Respectfully,

JULIE A. MARTINIELLO | PARTNER | DIMENSION LAW GROUP PLLC
130 Andover Park East, Suite 300 | Tukwila, WA 98188
t: *206.973.3500 *| f: *206.577.5090*| e: JULIE*@dimensionlaw.com*|
www.dimensionlaw.com


PRIVILEGED AND CONFIDENTIAL:  This e-mail (including any attachments) is
intended only for the use of the individual or entity named above and may
contain privileged or confidential information. If you are not the intended
recipient, or the employee or agent responsible to deliver it to the
intended recipient, you are notified that any review, dissemination,
distribution or copying of this e-mail is prohibited. If you have received
this e-mail in error, please immediately notify us by e-mail, facsimile, or
telephone; return the e-mail to us at the e-mail address below; and destroy
all paper and electronic copies.

-- 
PRIVILEGED AND CONFIDENTIAL:  This e-mail (including any attachments) is 
intended only for the use of the individual or entity named above and may 
contain privileged or confidential information. If you are not the intended 
recipient, or the employee or agent responsible to deliver it to the 
intended recipient, you are notified that any review, dissemination, 
distribution or copying of this e-mail is prohibited. Attempts to intercept 
this message are in violation of 18 USC 2511(1) of the Electronic 
Communications Privacy Act, which subjects the interceptor to fines, 
imprisonment and/or civil damages. If you have received this e-mail in 
error, please immediately notify us by e-mail, facsimile, or telephone; 
return the e-mail to us at the e-mail address below; and destroy all paper 
and electronic copies. Any settlement offer contained herein is made 
pursuant to Washington ER 408, and without admitting fault or liability on 
the part of this firm’s client(s) or its agents.  IRS CIRCULAR 230 
DISCLAIMER:  To ensure compliance with requirements imposed by the IRS, I 
inform you that any U.S. tax advice contained in this communication 
(including any attachments) is not intended or written to be used, and 
cannot be used, for the purpose of (i) avoiding penalties under the 
Internal Revenue Code; or (ii) promoting, marketing or recommending to 
another party any transaction or tax-related matter addressed herein. 
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20200110/b7b973fc/attachment.html>