28 Monday Dec 2015
Posted in Taxes
Tags
alternate valuation date, Basis, Beneficiary, Capital Gains, Cost Basis, date of death, Estate Tax Return, Executor, Fair Market Value, stepped-up basis
Every piece of property an individual owns has a basis used in calculating capital gains on a sale of property. So, an executor must understand the special rules related to capital gains on estate or inherited property. The stepped-up basis rule is an important rule the executor needs to understand.
26 Saturday Dec 2015
Posted in Taxes
Tags
Calendar Year, date of death, Estate Income Tax, Estate Tax, Estimated Tax, Final Taxes, Fiscal Year, Form 1041, Gift Tax, Tax Returns
An important function of the executor is to file tax returns for the decedent and the estate. Therefore, it is also important that the executor understands how the date of death determines which tax return to file. Income received before the date of death and after the date of death require different treatment. As a result, the executor must track the estate income accurately as depicted in the article Track the Estate Income.