Amounts received up to the tax basis
are received free of income tax,
Since the time that Congress experimented with these two carryover tax basis
regime initiatives, several fundamental changes have transpired that enhance the viability of a permanent carryover tax basis
regime and underscore the need for reform.
Indeed, a purchaser may realize significant economic benefit as a result of a tax basis
step-up, and a seller may in turn have additional leverage in negotiating the purchase price or other terms of a transaction.
The death of a partner in a general, an LP or LLC can have additional tax basis
complications that are often overlooked by tax practitioners.
Both transactions are treated as a sale or exchange, resulting in capital gain to A for the amount received in excess of his tax basis
, assuming A held the stock as a capital asset.
If property is sold within a family and the FMV of the property is less than its tax basis
, the pail gift--part sale tax result can be more attractive than treatment under IRC section 267 for three reasons: First, the transferee's tax basis
is generally higher than it would have been in a section 267 sale.
When property is acquired by gift in a generation-skipping transfer, the basis of the property is increased by the gift tax basis
adjustment (see above) before the generation-skipping transfer tax basis
adjustment is made.
In a nontaxable sale, the seller's gain (or loss), and thus the seller's tax cost, is measured by reference to its tax basis
in the stock of the RU (or its holding company); in a taxable sale, the seller's taxable gain (or loss) is measured by reference to the tax basis
in the net assets of the reporting unit.
* The initial tax basis
includes the cost of the home plus all settlement and closing costs.
The tax basis
trust is a fairly recent development and was previously envisioned as being a revocable trust until the death of the first spouse to die.
62], entitled "Evaluating the Adequacy of Disclosure in Financial Statements Prepared on the Cash, Modified Cash, or Income Tax Basis
What is the tax basis
of whole life policies which do not have explicit cost of insurance charges?