The Senate has yet to come to a real decision regarding the estate tax. Currently, there is no estate tax, but it is likely to return in 2011, according to New York Estate Lawyers. That may not be good news for heirs who decided to sell their inherited gains, however, thanks to higher capital gains taxes.
Before 2010, an heir could count on what’s called stepped-up basis on inherited property. This means capital gains taxes would be based on how much the asset was worth at the time the owner died, rather than the original purchasing price. Selling an item for what it’s worth currently would mean getting taxed on the difference between the current price and the selling price, rather than the difference between the purchasing price and the selling price.
This year, things are different, New York Estate Lawyers say. The new law of the land is the carry-over basis. Capital gains are now paid on the difference between sale price and the value of the asset when it was purchased, no matter how long ago that may have been. Not only does this mean higher taxes, but the heir would have to find out just how much the item was bought for whenever it was bought.
These are just the most simple forms of estate legislation, New York Estate Lawyers warn. For instance, executors can use the step-up basis for as much as $1.3 million (and another $3 million for a surviving spouse). There are some other exceptions as well, but in general the same rules apply to all.
The laws involving estate taxes are many and they change from year to year. A New York Estate Attorney can help you keep up with all these changes. Your financial future should be entrusted to the best – a New York Estate Attorney.
If you or a loved one is having trouble with the tangle of tax laws, a New York Estate Attorney is ready to assist you. You want to avoid all the legal troubles that come with money, or at least make them less problematic. Your best possible ally in that endeavor is a New York Estate Attorney.