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#3
09-05-2005, 03:33 AM
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 Re: Estate tax paid on house "Herb Smith" <smithff33[at]aol.com> wrote in - quote - > Dee wrote:
The deduction that I'm taking now is for IRD. I thought> > My father passed away in 1996. I rented out his house for > > several years, then fixed it up and sold it this year. > > > I am already deducting a little of the estate tax each year > > as a miscellaneous deduction not subject to 2% limitation > > under IRC sec 691(c). Can I also deduct the estate tax that > > was paid from the house sale? Or maybe add it to the cost > > basis? > What "estate tax" did you pay nine years after the > decedent's death? There is no deduction for estate tax paid > on assets of the decedent, except those that are classified > as "income in respect of decedent" (such as pensions, IRAs, > etc) where there is no stepup in basis. maybe there was something similar for estate tax that was paid on the stepped-up basis of the house at the time of death. It amounts to something like $12,000. Dee << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#2
09-05-2005, 03:14 AM
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| Re: Estate tax paid on house "Dee" <d[at]d.d> wrote: - quote - > My father passed away in 1996. I rented out his house for
You didn't pay any estate tax on the house sale. Therefore,> several years, then fixed it up and sold it this year. > I am already deducting a little of the estate tax each year > as a miscellaneous deduction not subject to 2% limitation > under IRC sec 691(c). Can I also deduct the estate tax that > was paid from the house sale? Or maybe add it to the cost > basis? you have nothing to deduct or adjust basis for. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#1
09-05-2005, 02:36 AM
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| Re: Estate tax paid on house Dee wrote: - quote - > My father passed away in 1996. I rented out his house for
No. The sale of the house is not income with respect to a> several years, then fixed it up and sold it this year. > I am already deducting a little of the estate tax each year > as a miscellaneous deduction not subject to 2% limitation > under IRC sec 691(c). Can I also deduct the estate tax that > was paid from the house sale? Or maybe add it to the cost > basis? decedent, even if the house itself is inherited. In performing the IRC 691(c) computation, you were already required to segregate normal assets from receivables that represent income (and some deductible expenses that were liabilities). Subsequent action by the estate or a beneficiary (other than electing the alternative valuation date) does not change the allocation. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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09-03-2005, 03:57 AM
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| Re: Estate tax paid on house Dee wrote: - quote - > My father passed away in 1996. I rented out his house for
What "estate tax" did you pay nine years after the> several years, then fixed it up and sold it this year. > I am already deducting a little of the estate tax each year > as a miscellaneous deduction not subject to 2% limitation > under IRC sec 691(c). Can I also deduct the estate tax that > was paid from the house sale? Or maybe add it to the cost > basis? decedent's death? There is no deduction for estate tax paid on assets of the decedent, except those that are classified as "income in respect of decedent" (such as pensions, IRAs, etc) where there is no stepup in basis. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
09-02-2005, 02:41 AM
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| Estate tax paid on house My father passed away in 1996. I rented out his house for several years, then fixed it up and sold it this year. I am already deducting a little of the estate tax each year as a miscellaneous deduction not subject to 2% limitation under IRC sec 691(c). Can I also deduct the estate tax that was paid from the house sale? Or maybe add it to the cost basis? Thanks, Dee << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| estate, house, paid, tax |
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