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#3
10-24-2003, 07:08 AM
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 Re: How to capture stock capital losses after owner's death?? "taxaide" <tax_aide[at]yahoo.com> wrote: - quote - > Situation: Broker accounts held in joint RLT. Husband
List members --> incurred many unrealized capital losses trading stocks. > Husband died. Widow sees losses; would like to use them on > TY2003 income tax return and carry over. Given that new > basis is established with H's death, IMHO losses were locked > in on death date or six months later, same as stepped up > basis would be locked. Is there any way widow can capture > the losses to offset future gains and/or carry losses over > to future tax years?? If so, how?? She's really disappointed > with my answer, so I promised her I would ask forum members. Thank you again for helping me help someone else who really needs it. Your replies were great, and will be understandable to my "client" whom I help as a volunteer. Frank, Tax-Aide, El Sobrante, CA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
10-20-2003, 01:12 AM
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| Re: How to capture stock capital losses after owner's death?? "taxaide" <tax_aide[at]yahoo.com> wrote: - quote - > Situation: Broker accounts held in joint RLT. Husband
If I understand you correctly, her husband died with stocks> incurred many unrealized capital losses trading stocks. > Husband died. Widow sees losses; would like to use them on > TY2003 income tax return and carry over. Given that new > basis is established with H's death, IMHO losses were locked > in on death date or six months later, same as stepped up > basis would be locked. Is there any way widow can capture > the losses to offset future gains and/or carry losses over > to future tax years?? If so, how?? She's really disappointed > with my answer, so I promised her I would ask forum members. in their joint account worth LESS than their purchase value (UNREALIZED LOSSES). Remember, these are only PAPER losses until the stock is sold. California is a community-property state, and it is likely that all joint assets are valued at date of death. This amounts to a 100% STEP-UP or STEP-DOWN in basis. Any paper GAINS or LOSSES are wiped out. Only future gains or additional losses would be taxable or used to reduce income. If these losses were never realized (by sale of the stock) prior to his death, it is too late now to do so. The step up rule works both ways. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
10-20-2003, 12:53 AM
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| Re: How to capture stock capital losses after owner's death?? taxaide <tax_aide[at]yahoo.com> wrote: - quote - > Situation: Broker accounts held in joint RLT. Husband
First, step up basis is for basis only. AVD can be elected> incurred many unrealized capital losses trading stocks. > Husband died. Widow sees losses; would like to use them on > TY2003 income tax return and carry over. Given that new > basis is established with H's death, IMHO losses were locked > in on death date or six months later, same as stepped up > basis would be locked. Is there any way widow can capture > the losses to offset future gains and/or carry losses over > to future tax years?? If so, how?? She's really disappointed > with my answer, so I promised her I would ask forum members. only by the executor only for all estate property and only when the result of the AVD step up is to lower federal estate tax. That's fairly restrictive and does not apply to using up unrecognized loss. Unrecognized loss dies when the owner dies. Owner's portion get the immediate or AVD step up. __ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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10-20-2003, 12:14 AM
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| Re: How to capture stock capital losses after owner's death?? taxaide <tax_aide[at]yahoo.com> wrote: - quote - > Given that new
I believe you are correct. The basis "step-up" rule can also> basis is established with H's death, IMHO losses were locked > in on death date or six months later, same as stepped up > basis would be locked. Is there any way widow can capture > the losses to offset future gains and/or carry losses over > to future tax years?? result in a "step-down." The only "hope" would be if some portion of the stocks was owned by the wife in her own right (ie: not as non-community property). MTW << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
10-18-2003, 06:34 AM
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| How to capture stock capital losses after owner's death?? Situation: Broker accounts held in joint RLT. Husband incurred many unrealized capital losses trading stocks. Husband died. Widow sees losses; would like to use them on TY2003 income tax return and carry over. Given that new basis is established with H's death, IMHO losses were locked in on death date or six months later, same as stepped up basis would be locked. Is there any way widow can capture the losses to offset future gains and/or carry losses over to future tax years?? If so, how?? She's really disappointed with my answer, so I promised her I would ask forum members. TIA, again. Frank, Tax-Aide in El Sobrante, CA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| capital, capture, death, losses, owner, stock |
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