Quote:
Originally Posted by raulus
Your heirs do get a step up to FMV at your death. At least under current law! Every once in a while there will be proposals to poke at this, but no changes yet.
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So, bottom line with the FMV at death - When (not IF) someone who has a large collection dies, then it's possible the cards can be sold at the current market value at the time of the collectors death without tax implications assuming the following is correct:
There is a federal threshold level at which an inheritance tax is not charged.
IF the total inheritance valuation (including the card collection at the FMV at time of death) is below the federal threshold, then no taxes would be due on the sale of the collection. However, if the collection is held for a year and the FMV increase by 10%, then the heirs would be liable to pay taxes on the 10% gain.
Is that correct?
I'm not a tax expert, so I'm just making assumptions and guessing here.