The Basis Rules for Assets Acquired by
Gift or Inheritance Are More Complex
Than You May Think
Capital gains taxes (and planning to avoid them) have become a far greater concern for most of your clients than estate taxes.
If you’re a CPA, estate planning attorney, or financial advisor, you already know the general concept of how capital gains are measured - - basically, sales or other proceeds in excess of “basis”. But, are you aware of the intricacies of how basis is computed, particularly in these events…
- When assets are acquired by gift (including a gift in a trust)?
- When they were previously sold to an IDGT (or a non-grantor trust)?
- When they’re acquired from a decedent (including the impact of state, community and separate property rules)?
- When assets are inherited back by a donor (gift maker) after the donee (recipient of the gift) dies?
- How basis works with nonqualified annuities, IRAs and other items of IRD (like installment notes)?
Learn all this and more on two, 90-minute presentations by Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished), CGMA, entitled, “Understanding the Tax Basis Rules When Assets are Acquired by Gift or Inheritance”.