In article <gq8jnf$7dt$1[at]reader1.panix.com> , Seth <sethb[at]panix.com> wrote:
- quote -

As of one second after death, those particular bonds (having the death
put) are worth par. So is the estate valued at the time of death, or
at the end of that day?

Seth

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On Mar 23, 2:17*pm, se...[at]panix.com (Seth) wrote:

- quote -

The alternative valuation date can only be elected (by the executor)
if both the taxable value of the estate and the estate tax are lower
on the alternative date.

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In article <gpbu2n$v7t$1[at]blue.rahul.net> ,
Steve Pope <spope33[at]speedymail.org> wrote:
- quote -

Wouldn't they be worth par as of the alternative (6 months after
death) valuation date (especially if they've been put by then)?

Seth

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removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:

- quote -

Tangentially, just because the bonds say "survivor put options" does
not mean you will be able to put them. Often the bond issuer
sets aside only a limited amount of funds to cover these puts,
and when those funds are used up, you cannot put the bonds.

- quote -

If they are successfully put, or sold, there is a capital gain.
The amortization election affects this gain.

What I am wondering is if there's a step-up in basis possible.

Steve

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On Mar 12, 8:42 am, Jeffrey <JHI3...[at]gmail.com> wrote:

- quote -

That depends on whether the bonds were amortized or not.

- quote -

My understanding is that the trust needs to pay the tax. This is done
on form 1041. The table on page on page 27 of the instructions has
the rates. The rates are high, and the exemption of $600 is small.

You might need an expert to handle this thing.

http://www.irs.gov/pub/irs-pdf/i1041.pdf

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My Mother died in October of 2008. At that time she held corporate
bonds. The bonds are in the process of being redeemed, they all had a
death put clause. I have two questions regarding this situation:

1. The estate will get the full value of the bonds (death put), even
though some of them are selling for what she paid. Is there still a
capital gain?

2. The process liquidating her bonds takes time. The estate is still
receiving the interest payments from these bonds (in 2009). How are
these treated tax wise?

Thanks.

Jeff

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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. > << ------------------------------------------------------- >