California Estate Planning Blog by Kevin Staker

January 9, 2010

Personal Note by Kevin Staker: How Blessed We Are

Filed under: Uncategorized — Kevin Staker @ 2:06 pm

We really are blessed to need to do estate planning. This video from our trip to Kenya, despite the paid for exuberance, gives a glimpse at true poverty:

Kevin Staker


January 7, 2010

Estate Tax Return Required for Any Step Up in Basis in 2010?

Filed under: Uncategorized — Kevin Staker @ 7:58 pm
Tags: , ,

Please someone show me how I am wrong but I believe we now need to file an estate tax return for each decedent with any appreciated capital assets.

IRC Section 1022(a) effective Jan. 1 now provides for a general rule of carryover basis. Section 1022(b) has an exception allowing for up to $1,300,000 in basis increase (note I do not see in the law where “aggregate basis increase” is actually defined). 1022(c) allows for an additional $3,000,000 basis increase in property going to the spouse and appears to retain the full step up basis for community property.

However, I read Section 1022(d)(3) to mean that such basis increase must be allocated in a return under Section 6018, which is an estate tax return.

Therefore, for every decedent in 2010, even a little old lady with a condo she bought for $100,000 and now worth $250,000, it appears we need to file an estate tax return so the beneficiaries can get the step up in basis when they sell the condo.

Am I wrong?

Kevin Staker