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Financial Planning / Tax Strategies


Subject:  Re: Long/Short Term Cap gain for me? Date:  7/26/2000  2:16 AM
Author:  donk23 Number:  38026 of 127747

You would pay tax at your (possibly) lower rate. The even better news is that when you inherit property its basis (the value against which you later compute gain/loss) gets "stepped up" to the value on the date of death. This means that you don't have to pay tax on any gain that your benefactor produced for you. I believe that when you finally sell you also get to use the original acquisition date as your acquisition date in order to determine short term vs long term gain/loss. You should check this to be certain.
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