It’s true that there’s no estate tax in 2010, so anyone who stands to inherit in that year will not lose any money to that, no matter how much the sum might be. Unfortunately, it might be offset by a change in capital gains tax when it comes to selling those inherited things, says a New York Family Lawyer.
Before 2010, an heir could sell inherited property what is known as a stepped-up basis, according to New York Family Lawyers. This means that capital gains would be assessed based upon the value of the asset when the owner died, not what the original owner bought it for. So, if someone bought a classic car when it was new for $5,000, but that car is now worth $75,000, the value of the car would be stepped up to $75,000. So, if the heirs sold the car for $75,000, in 2009, there would be no capital gains tax.
Lawmakers decided that would be too much money lost, so in place of the repealed estate tax, heirs had to pay capital gains on a carry-over basis. This means that same car would have $70,000 dollars eligible to capital gains tax, says a New York Family Lawyer. This could be a problem for people who inherit small businesses, who may have to pay hundreds of thousands of dollars to sell that business, even when it falls below the 2009 threshold where estate taxes normally would have been paid.
Matters of inheritance can be particularly tricky. Fortunately, a New York Family Attorney can make things a lot easier. Knowledge of the law is a useful asset to have and a New York Family Attorney can supply you with that knowledge.
The firm of Stephen Bilkis & Associates with convenient locations thorughout the Metropolitan Area, including servicing Bay Colony, New York City, can be of invaluable assistance to you if you find yourself a party to a case. Facing the Court without professional representation could lead to disastrous results.