Quote:
Originally Posted by fintstone
According to the IRS, yes (if it is cash)...but you did not indicate it was an "early withdrawal." Is that a mistaken term and you just mean an early distribution of his estate? What has/is an "early withdrawal for a 90-year-old?
If it is a non-cash asset (like real estate) that is given as a gift, there would likely be capital gains. Those are typically best to transfer as part of the estate as they generally are inherited at current value (no capital gains unless the value increases after the inheritance).
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Sorry, wrong term.. Early distribution is correct. Right now his assets are in the market in some form or fashion.. (stocks, CDs, etc) so in order to give cash, he would have to sell/liquidate some of those. So I'm guessing capital gains on that to him but no extra taxes under the lifetime gift ?
I personally would be happy to get my share in any form so is there a way for him to give/roll over assets without cashing them out and him not paying gains?
And if that is possible, then I would have to pay gains on them when I cash them out one day or does even get tracked because it was a gift?
Quote:
Originally Posted by greglepore
My understanding is the same as Fint's with one caveat-if he owes capital gains etc on the funds that he liquidates, he must pay them - the distribution to you is free of gift/inheritance tax if below the lifetime limit.
We held some of my dad's assets (real estate) until death because you inherit them with a "basis step up" that eliminates the capital gains. The decedent never pays them, and your new basis is the value on date of death. Applies to any asset-collectibles, investments , r/e etc.
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ok great, we are doing the same with his real estate..