Income tax basis is important in estate planning. This article examines what happens to an asset’s basis when it is gifted. It then examines what happens to the basis of an asset when someone dies with the asset and then bequeaths it to someone. Many people find it surprising that these are treated differently. Income tax basis is an important factor in considering estate planning strategies.
About Nydia Menéndez
Ms. Nydia Menéndez’ career has evolved from various perspectives, including government, the private sector, academia, and as an industry advocate. These career roles enable Ms. Menéndez to assess the competing interests from the perspective of someone who has taken one position or the other at some point in time. Thus allowing her to settle most cases with favorable results for her clients, in an expeditious and cost-effective manner.