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Step-up in basis eliminated this year

6-17-2010 - Capital gains taxes may be higher if you sell an appreciated asset you've inherited from someone who dies this year. That's because the "step up" in basis is eliminated in 2010. This year, rather than paying taxes on the appreciation based on the value on the date the person died, you will pay capital gains based on the original value of the asset. However, there is an exemption on the first $3 million in gains for the surviving spouse; for all others, the exemption is $1.3 million. The old step-up rules go back into effect next year, but that leaves the question unanswered: If you inherit an asset from someone who dies in 2010 but want to sell the asset in 2011, will you get the step-up or be stuck with the 2010 rules? At this point, the Internal Revenue Service has not resolved the issue.  Call The Karp Law Firm and we will assist you.

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