eBook Basis of Property Acquired by Git and Inheritance (LO. 7) Phong would like to begin planning her estate. She owns marketable securities that cost $10,000 twelve years ago. The market value is $40,000. She wonders whether she should tell her securities and distribute the proceeds to her son before she des or just give the securities directly to him. Phong's marginal tax rate is 32%; her son's marginal tax rate is 12% Complete the better to Phang explaining an optimal tax strategy for transferring assets to her son. Assume that phong would not be liable for the 3.8% surtax on unearned income Hint Be sure to consider the long-term capital gains rate If an amount is zero, enter"0" Dear Phong Per your request. I am writing to outline what I believe is the optimist tax strategy for transferring assets to your son If you sell your securities now you will recognize and realize again of Although your marginal tax rates 329, longterm capital gains are taxed at 15 the securities ar sold, the tax liability on the gain would be Gitting the securities results with your son having a basis of Because the of the stock than the basis as of the basis When your son is the securities, la red and recognized in But car that your marginal tax rate is 12. For taxpayers in the 12% marginal tax bracket, the his taxity on the sales Anet avings of rest A third alternative is to hold the securities until you die. Then your state can transfer the securities to your herited property takes the of the date of deaths as the basis or the four market value of the Assuming there is no estate tax to pay the optimal tax strategis Basis of Property Acquired by Gift and inheritance (LO. 7) Phong would like to begin planning her estate. She owns marketable securities that cost $10,000 twelve years ago. The market value is $40,000. She wonders whether she should sell her securities and distribute the proceeds to her son before she dies or just give the securities directly to him, Phong's marginal tax rate is 32%; her son's marginal tax rate is 12%, Complete the letter to Phong explaining an optimal tax strategy for transferring assets to her son. Assume that Phong would not be liable for the 3.8% surtax on unearned income. Hint: Be sure to consider the long-term capital gains rate. If an amount is zero, enter "0". Dear Phong . Per your request, I am writing to outline what I believe is the optimal tax strategy for transferring assets to your son If you sell your securities now, you will recognize and realize a gain of Although your marginal tax rate is 32%, long-term capital gains are taxed at 15%. If the securities are sold, the tax Hability on the gain would be Gifting the securities results with your son having a basis of Because the of the stock is than the basis as of the basis results. When your son sells the securities, his realized and recognized gain is But, recall that your son's marginal tax rate is 12%. For taxpayers in the 12% marginal tax bracket, the IS %; making his tax liability on the sale A net savings of results . A third alternative is to hold the securities until you die. Then your estate can transfer the securities to your son. Inherited property takes the as of the date of death as the basis or the fair market value as of the Assuming there is no estate tax to pay the optimal tax strategy is
