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<p class="MsoNormal"><span style="color:#002060">Thank you for the cite and the analysis.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="color:#222A35">Mark B. Anderson<br>
</span></b><span style="color:#222A35">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:blue">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:blue">www.mbaesq.com</span></a><b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">CONFIDENTIALITY NOTICE<br>
</span></b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine,
or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received
this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.</span><span style="font-size:7.5pt;color:#002060"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#002060"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext"> wsbarp-bounces@lists.wsbarppt.com
<wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Nick Pleasants<br>
<b>Sent:</b> 02/16/2023 1:50 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Step-Up in Basis Upon Conveyance<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">Mark,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">It’s a plain reading of
<a href="https://www.law.cornell.edu/uscode/text/26/1014">26 USC § 1014</a>(b). The basis adjusts to the fair market value if the property is received from a decedent in a way that the statute describes.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">As for the examples you posed, I think as a bright line rule, property received before death does not qualify for adjustment to basis, and property received
after death can qualify if it meets one of the criteria in the statute. Generally speaking, distributions under a Will, Trust, Transfer on Death Deed, Pay-on-Death, Beneficiary Designation, etc. should all qualify as “inheritance” under 26 USC § 1014(b)(1).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">This is not tax advice to you or anyone else.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">Best,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">Nick<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><b><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:black">Nicholas Pleasants | Shareholder
<o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#70AD47"><img border="0" width="223" height="95" style="width:2.3229in;height:.9895in" id="Picture_x0020_1" src="cid:image001.jpg@01D94223.A6F6EFF0" alt="OseranHahnAttyatLaw 8"></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#70AD47"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#70AD47"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">11225 SE 6<sup>th</sup> Street | Suite 100 | Bellevue, WA 98004<br>
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: <a href="mailto:npleasants@ohswlaw.com">
npleasants@ohswlaw.com</a> <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;text-autospace:none"><span style="font-family:"Times New Roman",serif;color:#1F497D">CONFIDENTIALITY NOTE: This e-mail message contains information belonging to the law firm of Oseran Hahn, P.S., which may be privileged,
confidential and/or protected from disclosure. The information is intended only for the use of the individual or entity named above. If you think that you have received this message in error, please e-mail the sender. If you are not the intended recipient,
any dissemination, distribution or copying is strictly prohibited.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Thursday, February 16, 2023 9:28 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Step-Up in Basis Upon Conveyance<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#002060">Dear All:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">My Clients periodically ask questions about the step-up in basis on prospective transfers of real property. Normally these involve intra-family transfers (between parents and their children, family trusts, etc.).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">For the following scenarios, will the recipient receive a step-up in basis?<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><a name="_GoBack"></a><span style="color:#002060">Transfer prior to death by gift. [My understanding is that there is no step up in basis.]</span><span style="font-family:"Times New Roman",serif;color:#002060"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#002060">Transfer prior to death as a distribution under the terms of a trust agreement.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#002060">Transfer prior to death as an advance on inheritance (either by existing will or anticipated intestate succession).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#002060">Transfer at time of death pursuant to the terms of a will. [My understanding is that the recipient receives a step-up in basis.]<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#002060">Transfer at time of death pursuant to the terms of a trust agreement.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:#002060">Transfer at time of death pursuant to a transfer on death deed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">In advance, thanks for your help here.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b>Mark B. Anderson<br>
</b>ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:blue">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:blue">www.mbaesq.com</span></a><b><o:p></o:p></b></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">CONFIDENTIALITY NOTICE<br>
</span></b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine,
or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received
this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.</span><span style="font-size:7.5pt;color:#002060"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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