LexisNexis® Legal Newsroom
Stepped Up Basis At Death—How High?

When the owner of an asset dies, in most cases the cost or basis of the asset for income tax purposes is increased to its fair market value. When the asset is later sold, there is no capital gain on the amount of the step up. Stated differently, capital gain is only assessed on the appreciation...

Estate, Capital Gains and Other Taxes in 2011--What Will Happen Now?

The people have spoken and the end is drawing near. The people are all of us who exercised our right to vote earlier this month and the end is the end of the tax cuts passed in 2001. If Congress does nothing, here is what happens. Income Taxes will increase January 1, 2011 by 3% for individuals earning...

Uniformity argument fails despite income tax on employee 401(k) contributions but not on employer 401(k) contributions (Pa. Commw. Ct. Dec. 16, 2010)

In Boguslavsky v. N. Pocono Sch. Dist. , 2010 Pa. Commw. LEXIS 677 (Pa. Commw. Ct. Dec. 16, 2010) [ enhanced version available to lexis.com subscribers / unenhanced version available from lexisONE Free Case Law ], a taxpayer's complaint against a school district alleged, inter alia, that the district's...

Separate Accounts for IRAs Will Help the Beneficiaries

The distribution rules for inherited IRAs generally make it advantageous to have separate accounts, which can be done during your lifetime or by December 31 of the year following your death. If you plan to leave an individual retirement account (IRA) balance to several beneficiaries, consider splitting...

Ask Liza: Capital Gains Taxes on Appreciated Property

Dear Liza: My mother gave her house to my sister just before she passed away. My sister is going to sell the house. Do we have to pay taxes on that? If your mother’s house had appreciated in value between the time your mother purchased it, and her death, then the answer is yes. I can’t answer...