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correct value of property includible in "gross estate" for estate tax purposes?
(My state didn't repeal estate tax for 2010.) The answer's probably obvious but I can't find it anywhere. If a decedent has land with FMV of $ 10 in 2010 and they paid $ 2 when they bought it in 1970, is the amount that's includible in their gross estate $ 10 or $ 8? It seems like $ 8 is the obvious answer, otherwise it's a double taxation in a way. I just can't find the answer spelled out anywhere. Many thanks in advance.
3 Answers
- MathewLv 71 decade agoFavorite Answer
To evaluate an estate normally the value is based on the FMV of each asset on the date of the decedents passing. In your example that would be $10. You seem to think that these things were intended to be logical and fair. That would be an incorrect assumption.
- Anonymous1 decade ago
The Gross Value is the FMV on the date of death or $10.
The estate tax in your state is NOT an income tax (which is what capital gains are), so it's not double taxation. Double would be you inheriting the property, selling it for $10 and putting all $10 on *your* tax return. (Same for the estate.)
- troLv 71 decade ago
the value of the assets at the time of death is what the estate is worth, that is one reason estate taxes are so cumbersome and take extraordinary time
the value of the assets is the determining factor in the amount estate taxes the Fed and State would get and that would be very relevant
