[WSBARP] Capital gains and probate

[Kary Krismer]

That is my understanding as well.  The only thing I would add is that 
for estate tax purposes you can value the estate at either date of death 
or six months down the road.  So if you're getting an appraisal it may 
be better to wait so you can get both valuations as part of one 
appraisal/BPO.  Waiting doesn't impact the accuracy of the 
appraisal--probably helps if anything.

Not sure whether that election affects the basis to the estate (or to 
the heir if transferred to them), but I think it does.

Kary L. Krismer
John L. Scott, Inc.
206 723-2148

On 1/10/2020 10:53 AM, Julie Martiniello wrote:
> 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 
> <mailto: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 <mailto:jim at doranlegal.com>
>     www.doranlegal.com <http://www.doranlegal.com>
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> -- 
> Respectfully,*
> *
>
> JULIE A.MARTINIELLO |PARTNER |DIMENSION LAWGROUPPLLC
> 130 Andover Park East, Suite 300 | Tukwila, WA 98188
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> e: JULIE_ at dimensionlaw.com_|www.dimensionlaw.com 
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