Discussion:Step up in bases of farm property after death of a spouse
From TaxAlmanac
| Revision as of 22:44, 20 January 2009 Blrgcpa (Talk | contribs) (Who owned the pr) ← Previous diff |
Current revision Taxtamer (Talk | contribs) (Agree w/ Blrg &) |
||
| Line 26: | Line 26: | ||
| {{ForumReplyPost|UserID=Blrgcpa|Date=20 January 2009|Text=Who owned the property? If it was the farmer only and not his wife, there is a full step up in basis as of the dod of the farmer.}} | {{ForumReplyPost|UserID=Blrgcpa|Date=20 January 2009|Text=Who owned the property? If it was the farmer only and not his wife, there is a full step up in basis as of the dod of the farmer.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Taxtamer|Date=21 January 2009|Text=Agree w/ Blrg & Crow, most often in non-community state the farmer owns 100% of the personal property used in the farming operation. Very likely a 100% step up in basis will apply.}} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> Step up in bases of farm property after death of a spouse
Discussion Forum Index --> Tax Questions --> Step up in bases of farm property after death of a spouse
Lauriefeagins (talk|edits) said: | 19 January 2009 |
| Farmer passed away and left the farming operation to his spouse. He didn't own land just equipment and cattle. The wife is going to keep the farming operation with her sons help. I think I'm right that she gets 1/2 FMV at date of death for basis in the assets. My question is for property that still has depreciation left from past years how do you figure her basis? Is it 1/2 FMV at date of death plus what's left of the depreciable basis? Also, for items bought this year by farmer before he passed away can spouse now take a 179 deduction for those? | |
| 19 January 2009 | |
| he gets depreciation on his half with original basis up until date of his death
she gets depreciation on her half with original basis for the full year she gets depreciation on the inherited half with stepped up basis from date of death through end of year they can elect 179 for property purchased prior to his death then she will inherit half with a stepped up basis and begin depreciating that half anew (but it won't re-qualify for 179)
| |
| 19 January 2009 | |
| thus, you will have to manually override the depreciaton that your software calculates, but we all know that 'Tax software is no substitute for a good tax professional.' | |
| 19 January 2009 | |
| I don't see anything in the original question indicating that this farm equipment and livestock was jointly owned. If it was, then Kevin is correct. If it was not jointly owned, then we need to rethink this unless, perhaps, if the taxpayers lived in a community property state. | |
| 19 January 2009 | |
| I guess my assumption was that Laurie meant something by her comment that the surviving spouse would get 1/2 stepup | |
| 20 January 2009 | |
| Who owned the property? If it was the farmer only and not his wife, there is a full step up in basis as of the dod of the farmer. | |
| 21 January 2009 | |
| Agree w/ Blrg & Crow, most often in non-community state the farmer owns 100% of the personal property used in the farming operation. Very likely a 100% step up in basis will apply. | |
