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Clarifying Complicated Federal Capital Gains Tax Laws

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 Internal Revenue Service (IRS) at a rate of 15% to 20%. A capital gains tax is applied to inherited assets that 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.

Other Factors To Keep In Mind

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 attorneys will explain these and other tax consequences in order to minimize the taxes paid on your inheritance.

At Rice & Quattrone, PC, our goal is ensuring that you pay as little tax on your inheritance as legally possible. From our offices in Cherry Hill and Linwood, we advise clients throughout New Jersey and the greater Philadelphia metro area.

Get Sound Counsel On Your Tax Inheritance Matters

Using our 30-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 make sure that your tax plan optimizes your unique circumstances. Our attorneys are licensed to practice in New Jersey and Pennsylvania.

Contact our experienced lawyers online today to discuss minimizing your federal capital gains tax. You can also reach us over the phone at 609-398-3447 or 856-673-0048.