Message Font: Serif | Sans-Serif
No. of 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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.