The general rule is the recipient of gift of property takes the same tax basis in the property that you had.
But the beneficiary's tax basis will be the lower of your basis and the current market value.
It's better for you to hold the property or sell the property so you can deduct the loss and give the after-tax proceeds. Give appreciated investment property after price decline.
he or she will have received more long-term wealth and you wo not have incurred estate and gift taxes or used part of your lifetime exemption..
Determine in the year the amount you want to give, and then look for time during the year to maximize the tax-free value of the gifts, such as after in the markets. Give property that's likely to appreciate.
it's profitable to make gift of the property and let him or her sell it.
the gift can make sense when you're in higher capital gains tax bracket..
By holding the investment for the rest of your life, More importantly, remember that you can ensure 0% capital gains tax on the gains..
When property is inherited, the beneficiaries increase the tax basis to the fair market value on the date the owner passed away.
You wo not want to do this except otherwise it's better to hold the asset for life and make gifts of other property. Give assets that pay income.
Read more
Related items:
