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White oak log prices
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<blockquote data-quote="pass-thru" data-source="post: 4156098" data-attributes="member: 2382"><p>The value of the property is determined by the fair market value. Tax basis pertains to capital gains, which is completely different than estate tax. Estate tax is levied on the gross estate, and it captures the fair market value of the property as well as all other assets. I don't know what the state exemption is on estate tax, but the federal is now over $5 million on and individual, twice that for a couple. By stepping up the basis for capital gains, it reduces the tax liability.</p><p></p><p>If you bought property years ago for 10k, and sold it now for 100k, then you would have 90k of capital gains that is taxable. If instead you die and it passes to your heirs, they would now have a basis of 100k, and could sell it tax free. Or if they sell it in 10 years for 150k, there would be only 50k of capital gains at that time.</p></blockquote><p></p>
[QUOTE="pass-thru, post: 4156098, member: 2382"] The value of the property is determined by the fair market value. Tax basis pertains to capital gains, which is completely different than estate tax. Estate tax is levied on the gross estate, and it captures the fair market value of the property as well as all other assets. I don't know what the state exemption is on estate tax, but the federal is now over $5 million on and individual, twice that for a couple. By stepping up the basis for capital gains, it reduces the tax liability. If you bought property years ago for 10k, and sold it now for 100k, then you would have 90k of capital gains that is taxable. If instead you die and it passes to your heirs, they would now have a basis of 100k, and could sell it tax free. Or if they sell it in 10 years for 150k, there would be only 50k of capital gains at that time. [/QUOTE]
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