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#4
12-14-2007, 11:06 AM
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 Re: Basis step-down at death? William Brenner wrote: - quote - > I cannot recall any reference to basis _step-down_
don't adjust basis unless there is some sort of transfer. The basis> to FMV for assets, such as securities, that have > declined in value. Is this the case? Does the > capital loss go bye-bye as does the taxable gain > in a step-up? If you purchase a security for $100 and then it's FMV falls to $50, you remains $100. There are cases where you can have a step down of basis in, for example, partnerships. An IRS 754 section b election in a partnership transfer can create a step down of basis in the assets of the partnership to be transfered. Here is a link to give you some detail: http://law.wustl.edu/Courses/archive...line9fl01.html -paul ianal |
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#3
12-14-2007, 11:06 AM
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| Re: Basis step-down at death? On Dec 13, 2:02 pm, William Brenner <wbren...[at]nospamplease.net> wrote: - quote - > I should know better, but this simplistic query
Yes and yes.> came to mind: > Over the years, there have been countless posts > regarding basis step-up to FMV of assets upon the > death of the owner. > I cannot recall any reference to basis _step-down_ > to FMV for assets, such as securities, that have > declined in value. Is this the case? Does the > capital loss go bye-bye as does the taxable gain > in a step-up? > Bill Regards, The other Bill |
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#2
12-14-2007, 11:06 AM
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| Re: Basis step-down at death? In article <0d03m3drdm4c991bojmmu1iplq2gkljno4[at]4ax.com> , William Brenner <wbrenner[at]nospamplease.net> wrote: - quote - > I should know better, but this simplistic query
The basis of any asset transferred upon the death of the asset owner is> came to mind: > Over the years, there have been countless posts > regarding basis step-up to FMV of assets upon the > death of the owner. > I cannot recall any reference to basis _step-down_ > to FMV for assets, such as securities, that have > declined in value. Is this the case? Does the > capital loss go bye-bye as does the taxable gain > in a step-up? the fair market value on the date of death. So if the value of the asset has depreciated such that the FMV is less than original cost, the basis is the FMV, not the cost. Yes, that means no capital loss (unless of course the recipient subsequently sells the asset at less than the FMV on the date of death). -- D.F. Manno | dfmanno[at]mail.com "A woman's a two-face, a worrisome thing who'll leave ya to sing the blues in the night." |
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#1
12-14-2007, 11:06 AM
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| Re: Basis step-down at death? William Brenner wrote: [...] - quote - > Over the years, there have been countless posts
To the recipient, inherited assets generally have a basis equal to the> regarding basis step-up to FMV of assets upon the > death of the owner. > I cannot recall any reference to basis _step-down_ > to FMV for assets, such as securities, that have > declined in value. Is this the case? Does the > capital loss go bye-bye as does the taxable gain > in a step-up? FMV of the asset at time of death. IRS Pub 551 does not use the terms "stepped up" or "stepped down". (Or "step", for that matter). -Mark Bole |
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12-14-2007, 11:05 AM
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| Re: Basis step-down at death? On Dec 13, 11:02=EF=BF=BDam, William Brenner <wbren...[at]nospamplease.netwrote: - quote - > I should know better, but this simplistic query
Yes and yes> came to mind: > Over the years, there have been countless posts > regarding basis step-up to FMV of assets upon the > death of the owner. > I cannot recall any reference to basis _step-down_ > to FMV for assets, such as securities, that have > declined in value. Is this the case? =EF=BF=BDDoes the > capital loss go bye-bye as does the taxable gain > in a step-up? |
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#-1
12-13-2007, 06:02 PM
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| Basis step-down at death? I should know better, but this simplistic query came to mind: Over the years, there have been countless posts regarding basis step-up to FMV of assets upon the death of the owner. I cannot recall any reference to basis _step-down_ to FMV for assets, such as securities, that have declined in value. Is this the case? Does the capital loss go bye-bye as does the taxable gain in a step-up? Bill |
| Tags |
| basis, death, stepdown |
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