- quote -

sold before the alternate valuation date, then the sales proceeds
determine the value on the estate tax return.

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On Feb 6, 3:16 pm, dapperdobbs <George...[at]hotmail.com> wrote:
- quote -


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On Feb 5, 1:58*pm, firenze5...[at]gmail.com wrote:
- quote -


The NY estate tax is a "pick-up" or "sponge" tax, equal to the credit
allowed for state death taxes against the federal estate tax. The
federal credit, of course, has gone away, but NY still conforms to the
federal estate tax rules as they were in effect in 1998, i.e., before
the EGTRRA changes that phased out the credit for state death taxes
and replaced it with a deduction. In addition, the unified credit in
1998 was $345,800, representing the tax on the first $1 million of
estate value, and NY still follows those rules. So for NY, you have
to prepare a "pro forma" 706 on a pre-EGTRRA basis to compute the NY
tax, which will equal the maximum credit allowed on the pro forma 706
for state death taxes.

Even if no federal estate tax is actually due, there may be a NY
estate tax liability.

Katie in San Diego

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On Feb 6, 10:51*am, firenze5...[at]gmail.com wrote:
- quote -

I would ask the attorney to explain *in step-by-step detail* and give
an example. Get the example in writing - or make your own notes, which
you can show to the atty to make sure you got it right. You might ask
for the example as it will actually appear on the 706 or 1041. I'm
guessing that as executor fulfilling your fiduciary duties you can act
to preserve the value of the estate, which may involve some
transactions such as accumulation of interest payments or dividend
payments, and I believe these show up on the 1041. Presumably the cost
basis would be either date of death or alternate, but following that,
if securities are transacted, it may be that the gain or loss shows up
on the 1041, where a loss could be used to offset divs and interest.

I'd be curious to know if my speculations are correct.

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On Feb 5, 9:27 pm, BeanTownSteve <s.cronmil...[at]gmail.com> wrote:
- quote -

well, because on another site and also in this post Stu mentioned that
it is sometimes
done and then the loss isapplied on the 1041. Secondly it would not
be a loss. These securities are AAA stock and I can take them and put
them
directly into my personal brokerage account. I had planned to
purchase some shares with some of the proceeds anyway.

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On Feb 5, 4:58 pm, firenze5...[at]gmail.com wrote:
- quote -

you're giving it away (my daughter invented the concept of "Selling it
for FREE" with her lemonade stand when she was 7) I would also be
interested. But seriously, when you wrote that

[the attorney mentioned ( twice,) that it would be better if I were to
sell the stocks at the lower price That the (loss) could be used on
the form 706]

did it make sense to you?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 5, 7:03 pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote:
- quote -

Thanks. I think we had better hire an accountant. Our attorney who is
also acting as our accountant
may not be well versed in this issue. I asked my brother who was also
at the meeting w/ the att'y
and he also recalls the sell low advice. It may be because the dod of
the decedent occurred when the
market was at an all time high.
K

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

firenze5943[at]gmail.com wrote:
- quote -

I hate to say this, but when it comes to tax strategy listen to your
accountant, not your attorney.

There is a thing called the alternate valuation date. The estate can
elect to have the estate valued either on the date of death or on the
date six months later. It's generally only better to use the alternate
date if the entire economy has taken a dive and all the property is, in
the aggregate, worth less.

To get the lower valuation the property only needs to be owned on the
alternate date. It does not need to be sold.

If there's actually been a loss on the securities, they can be sold and
the loss would probably be taken on the 1041, not the 706.

Others who know better will correct me if I'm wrong (I'm an estate
planning and tax attorney who doesn't do returns), but I think either
you misunderstood or your attorney gave you bad advice.

Stu

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On Feb 5, 5:21 pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote:
- quote -


Somehow in my notes the attorney mentioned ( twice,) that it would be
better if I were to sell the stocks at the lower price That the
(loss)
could be used on the form 706 I am confused and
guess I had better wait for his return.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

firenze5943[at]gmail.com wrote:

- quote -

Essentially yes. The calculation is more complicated - it includes all
money in the estate, and then subtracts the tax that would have been
imposed on the first two million.

- quote -

I'm not familiar with NY law on this subject.

- quote -

Securities, as all estate assets, are valued at market value on the
date of death. If these are publicly traded securities the value will
be pegged at the price they were traded at on the date of death. If
you sell them low you will not reduce the tax.

Stu

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Thanks for anyone who answered my question regarding 1099s for a
probate situation. I am working on
the forms now.
Just one more question. Just want to be sure I am correct. I am
executor of an estate.
Atty,Acct is out of town. If the value of an estate should come in
over 2 million, would federal taxes
be due "only" on the amount over the 2 million. And, does this apply
to NYS as well?
I am thinking that it might be better in this case to sell some
securities low.
Thanks again Karen

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >