Federal Capital Gains Tax
A capital gain is when the value of an asset at the time it is sold is greater than the amount that was paid — at which point a capital gains tax is levied on the profit by the IRS at a rate of 15-20%. A capital gains tax is applied to inherited assets which have increased in value since they were purchased.
When a person dies with stock, real estate or other assets that have increased in value since purchased, the value on the date of death is used as the baseline to determine the IRS tax. Determining capital gains tax implications can be extremely complicated. It is crucial that you work with an experienced and skilled estate tax attorney to guide you through the process.
There are also other important tax implications to consider. For example, it is not beneficial to give away highly appreciated property as gifts prior to your death. You could disqualify yourself from the “step up” into the next tax bracket, which would lower the percentage at which your estate is taxed.
Our New Jersey attorneys will explain these and other tax consequences in order to minimize the taxes paid on your inheritance.
At the Elder Rice & Quattrone, PC, our goal is that you pay as little tax on your inheritance as legally possible. Contact our Ocean City location to discuss your situation.
Minimizing Taxes On Your Inheritance
Using our 25-plus years of experience with tax planning, we will walk you through each step of this complex area of tax law to ensure that you pay as little capital gains tax as legally possible. We draft our own documents to ensure that your tax plan optimizes your unique circumstances.
Contact our federal estate tax lawyers today to discuss minimizing your federal capital gains tax.