****** Scenario 6: Creative Estate Planning Meets the Step-Up in Basis ...
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Scenario : Creative Estate Planning Meets the StepUp in Basis An elderly taxpayer with a $ NOL carryforward owns the following assets: Stocks: Basis $ FMV $ million Rental Property: Basis $ FMV $ million Closelyheld business: Basis $ FMV $ The taxpayer is in poor health. Heirs are in high tax brackets. Other details to make things interesting: Some of the rental property depreciation has been recaptured in previous years. Questions: Analyze the tax consequences of holding these assets until death stepup in basis vs gifting them during the taxpayer's lifetime. How does the NOL carryforward factor into the decision, especially if it's about to expire? Discuss strategies like gifting specific assets selectively, considering the different types of potential gain embedded within them.
Scenario : Creative Estate Planning Meets the StepUp in Basis
An elderly taxpayer with a $ NOL carryforward owns the following assets:
Stocks: Basis $ FMV $ million
Rental Property: Basis $ FMV $ million
Closelyheld business: Basis $ FMV $
The taxpayer is in poor health. Heirs are in high tax brackets.
Other details to make things interesting:
Some of the rental property depreciation has been recaptured in previous years.
Questions:
Analyze the tax consequences of holding these assets until death stepup in basis vs gifting them during the taxpayer's lifetime.
How does the NOL carryforward factor into the decision, especially if it's about to expire?
Discuss strategies like gifting specific assets selectively, considering the different types of potential gain embedded within them.
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