Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: UofAWildcats Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: tax consequences w/limited partnership Date: 7/17/2001 4:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
My father and I own a vacation home as a 50/50 limited partnership established as a trust. In his will, when he dies I inherit his 50% making me the 100% owner. I am trying to figure out what happens tax wise when he dies. Do I have to pay taxes on the value of the portion that he wills to me, or do I acquire it without taxation since I was already a limited partner in the property/trust?
Print the post Back To Top
Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 52614 of 121572
Subject: Re: tax consequences w/limited partnership Date: 7/17/2001 6:44 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
When your father dies, his share of the partnership will enter his estate. The estate may be taxed on the value of all of its assets (depending on total asset value, extent of taxable gifts he made during his lifetime, etc.) After the estate pays any death taxes due, his share of the partnership will pass to you. You will not pay any tax upon receipt. Your basis in the entire property will consist of the basis of your 50% (as adjusted over the years for improvements and depreciation, etc.) and presumably, a stepped-up basis for your father's half (usually, as of the date of death). Of course, this all changes if he dies in 2010.

There are some subtleties in the above scenario. If there is anything that isn't clear, just ask again.

Ira

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement