Lesson: Inherited Property

In this lesson, Nick Palazzolo, CPA, breaks down the rules and options surrounding the basis of inherited property, focusing on the tricky concept of the alternate valuation date and its role in estate tax planning. He makes sense of the potentially complex process of determining the fair market value at the date of the decedent's death versus the alternate valuation date. Nick clarifies the scenarios where an executor might opt for the alternate date, emphasizing its impact on the calculation of capital gains or losses when the property is eventually sold. With clear examples, he illustrates step-up and step-down basis adjustments, ensuring a solid grasp of how these can affect the tax liabilities for beneficiaries. Nick ensures these concepts are understood through his engaging explanation, paced with practical insights and a touch of humor to lighten the inherently somber topic.