[Neilk]

Hello,

I should probably ask a tax attorney or accountant about this, but figured someone on the board could probably steer me in the right direction.

My father passed away in July and we are in the process of dealing with his estate. He was a resident of France and not a US citizen, so US estate laws don't apply to his holdings. His estate has to pay French taxes, so my question is, as we start to sell stocks/assets from his account to pay French taxes, at what point does what we sell become a capital gain for us that we have to report to the IRS?

I know that when stocks are sold the cost basis is stepped up to the date of death, but if we sell any stock to cover his French obligations and there is a paper profit, is that a capital gain for us?
I guess my ultimate question is at what point is anything we do taxable in the US, or at what point are the assets truly ours?

thanks,
Neil