money February 3, 2025 funding Rep: 123

Are debts paid from an estate before or after basis adjustment?

Score

Answers

274

Views

32.2

Trend Score

Question Details

No question body available.

Answers (1)

Accepted Answer Available

Accepted Answer

February 4, 2025 Score: 3 Rep: 194,087 Quality: High Completeness: 40%

In the US the step up of the basis occurs upon the transfer of the property from the decedent (See the IRC Sec. 1014). The estate receives the property from the decedent, so the section applies and the basis is adjusted according to the IRC Sec. 1014(a) (unless exceptions listed in 1014 apply).

In other words, does the estate avoid capital gains on the asset when repaying the debt?

The estate doesn't avoid capital gains, but they're calculated based on the adjusted basis.

Export Question Data

Export this question and its answers for further analysis or reporting.

Back to Questions

Are debts paid from an estate before or after basis adjustment?

Question Details

Tags

Answers (1)

Analysis Metrics

Question Information

Actions

Related Questions

Export Question Data