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#5
03-01-2008, 07:02 PM
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 Re: Form 1041, Sch D On Feb 29, 4:49*pm, Stuart Bronstein <spamt...[at]lexregia.com> wrote: - quote - > joetaxpayer <joetaxpa...[at]nospam.com> wrote:
Am> > When Mom died, her cost was not the issue. Step up in basis takes > > care of that. So, she passed and the stock was worth $70K. Ok, but > > is there not an alternate valuation of 6 months later? Since it > > was sold 9 months later, this may or may not help, but odds are, > > the later valuation would be higher, and the cap gain less than > > the $10K we are discussing. > If that's true, you might be able to justify the actual sale price as > the value on the alternate valuation date. *The problem is that you > have to elect the AVD on the 706, and the values on that date will > apply to all assets of the estate. > Stu > -- > << ------------------------------------------------------- > > << 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 atwww.asktax.org. * * * * * * * * > > << * * * * Copyright (2007) - All rights reserved. * * * * > > << ------------------------------------------------------- > "Were did a 10k loss come from? It's either 10k gain or 30k loss. I missing something? " No, sorry. it obviiously should be a gain, not a loss, of $10K. ed -- -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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#4
02-29-2008, 09:49 PM
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| Re: Form 1041, Sch D joetaxpayer <joetaxpayer[at]nospam.com> wrote: - quote - > When Mom died, her cost was not the issue. Step up in basis takes
If that's true, you might be able to justify the actual sale price as> care of that. So, she passed and the stock was worth $70K. Ok, but > is there not an alternate valuation of 6 months later? Since it > was sold 9 months later, this may or may not help, but odds are, > the later valuation would be higher, and the cap gain less than > the $10K we are discussing. the value on the alternate valuation date. The problem is that you have to elect the AVD on the 706, and the values on that date will apply to all assets of the estate. Stu -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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#3
02-29-2008, 09:17 PM
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| Re: Form 1041, Sch D removeps-groups[at]yahoo.com wrote: - quote - > On Feb 29, 9:53 am, "Fred J. Tydeman" <tyde...[at]tybor.com> wrote:
of that. So, she passed and the stock was worth $70K. Ok, but is there> > A few years ago, my mom bought some stock for $100K. A couple of > > years later, she died and the stock was worth $70K. 9 months later, > > the stock was sold for $80K (to help pay the Form 706 estate taxes). > > Now, when I fill out the estate income tax return, Form 1041, Sch D, > > do I show a loss of $20K ($80K-100K), or a gain of $10K ($80K-70K)? > A gain of 10k. Strange, a lot of web sites tax about step-up of > basis, but few talk about a step-down. What's more: any wash sale > carryovers are also lost. > http://www.wwwebtax.com/deductions_z...tal_losses.htm > <Quote> Death of the taxpayer > If the taxpayer dies and capital loss carry overs are not used up the > taxpayer's estate may not deduct the remaining capital loss. An unused > individual capital loss may not be carried over by a surviving spouse. > </Quote When Mom died, her cost was not the issue. Step up in basis takes care not an alternate valuation of 6 months later? Since it was sold 9 months later, this may or may not help, but odds are, the later valuation would be higher, and the cap gain less than the $10K we are discussing. JOE www.blog.joetaxpayer.com -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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#2
02-29-2008, 08:56 PM
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| Re: Form 1041, Sch D On Feb 29, 12:53 pm, ed <edcos...[at]sbcglobal.net> wrote: - quote - > You are correct. You have a $10,000 long term loss. Yes the $30,000
Were did a 10k loss come from? It's either 10k gain or 30k loss. Am> is lost and > gone forever. I missing something? -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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#1
02-29-2008, 08:55 PM
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| Re: Form 1041, Sch D On Feb 29, 9:53 am, "Fred J. Tydeman" <tyde...[at]tybor.com> wrote: - quote - > A few years ago, my mom bought some stock for $100K. A couple of
A gain of 10k. Strange, a lot of web sites tax about step-up of> years later, she died and the stock was worth $70K. 9 months later, > the stock was sold for $80K (to help pay the Form 706 estate taxes). > Now, when I fill out the estate income tax return, Form 1041, Sch D, > do I show a loss of $20K ($80K-100K), or a gain of $10K ($80K-70K)? basis, but few talk about a step-down. What's more: any wash sale carryovers are also lost. http://www.wwwebtax.com/deductions_z...tal_losses.htm <Quote Death of the taxpayer If the taxpayer dies and capital loss carry overs are not used up the taxpayer's estate may not deduct the remaining capital loss. An unused individual capital loss may not be carried over by a surviving spouse. </Quote -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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02-29-2008, 07:53 PM
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| Re: Form 1041, Sch D On Feb 29, 11:53*am, "Fred J. Tydeman" <tyde...[at]tybor.com> wrote: - quote - > A few years ago, my mom bought some stock for $100K. *A couple of
* * * * * * * * * * * * > > << * The Charter and the Guidelines for submitting posts * > > << *to this newsgroup as well as our anti-spamming policy *> > << * * * * * * * * *are atwww.asktax.org. * * * * * * * * > > << * * * * Copyright (2007) - All rights reserved. * * * * > > << ------------------------------------------------------- > You are correct. You have a $10,000 long term loss. Yes the $30,000> years later, she died and the stock was worth $70K. *9 months later, > the stock was sold for $80K (to help pay the Form 706 estate taxes). > Now, when I fill out the estate income tax return, Form 1041, Sch D, > do I show a loss of $20K ($80K-100K), or a gain of $10K ($80K-70K)? > My reading of the 1041 instructions says it must be a gain as the > basis is the value at time of death. > If I am required to show a gain, what happened to the ($70K-100K) > loss? *Is it just gone when she died? *If so, that means one should > sell their losers every year and try to use those losses on a 1040. > --- > Fred J. Tydeman * * * *Tydeman Consulting > tyde...[at]tybor.com * * *Testing, numerics, programming > +1 (775) 358-9748 * * *Vice-chair of J11 (ANSI "C") > Sample C99+FPCE tests:http://www.tybor.com > Savers sleep well, investors eat well, spenders work forever. > -- > << ------------------------------------------------------- > > << 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. * * * * * * * * *> > << * * * * * * * * * * * * * * * * is lost and gone forever. ed -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
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#-1
02-29-2008, 04:53 PM
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| Form 1041, Sch D A few years ago, my mom bought some stock for $100K. A couple of years later, she died and the stock was worth $70K. 9 months later, the stock was sold for $80K (to help pay the Form 706 estate taxes). Now, when I fill out the estate income tax return, Form 1041, Sch D, do I show a loss of $20K ($80K-100K), or a gain of $10K ($80K-70K)? My reading of the 1041 instructions says it must be a gain as the basis is the value at time of death. If I am required to show a gain, what happened to the ($70K-100K) loss? Is it just gone when she died? If so, that means one should sell their losers every year and try to use those losses on a 1040. --- Fred J. Tydeman Tydeman Consulting tydeman[at]tybor.com Testing, numerics, programming +1 (775) 358-9748 Vice-chair of J11 (ANSI "C") Sample C99+FPCE tests: http://www.tybor.com Savers sleep well, investors eat well, spenders work forever. -- << ------------------------------------------------------- > << 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. > << ------------------------------------------------------- > |
| Tags |
| 1041, form, sch |
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