83 year old terminal ill man has $100,000 loss carryover. Sell stock with capital gain of $100,000 before die?
Or wait and let the 4 heirs deal with the carryover loss?
Should he sell now before he dies so that he could take advantage of the $100,000 carryover loss tax deduction this year before he dies next year. Then his heirs would have money?
Then the sole heir would getmore money?
Using a carryover loss to offset gains will leave you with less taxes to pay. Therefore, this leaves more money to you sole heir. Yes or No?
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about 1 year ago
Assuming USA, cap gains all get wiped out at death. Inheritance taxes only apply.
about 1 year ago
Not much point to it. When he dies, if there are enough assets in his estate, there will be an estate tax. So if his estate is $20 million in cash it would be the same tax as if it were $ 20 million in stocks. The heirs would not be taxed on it, but would receive it with its fair market value as the basis. If the stock went up after they inherited it and they sold it they would have a gain and if it went down and they sold it they could take a loss.
People often have capital losses on inherited real estate since they sell it as fast as they can without much effort to get the highest possible price.
about 1 year ago
You’re more concerned about money that someone you know personally who is dieing?
We’ll, now that we have our priorities straight, there is no cap gain after death, nor are they any tax deductions. There will only be estate taxes – no write offs.
If someone dies with $100,000 it does not matter what they paid for it. There is no cost basis. The beneficiary will have a zero cost basis.
Go see an estate attorney for legal estate tax questions.
about 1 year ago
No.
I think Net Advisor is being rude and out of line, not realizing life goes on and one must still conduct business (or that the terminal ill man could be the one needing the answer concerned about leaving the most to the heirs).
That said, he is right that you get stepped up value to the value at the day of death and the losses and gains are wiped out.
There is no point in selling to realize gains against the earlier loss since there will be no taxable gains (or losses for that matter. Both go away).