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I'm not sure. I'm still hunting for confirmation but I think you're supposed to assess tax liability for Q1 and if you expect to owe, you pay estimated taxes for that amount (if you have reason to be concerned about an underpayment penalty). Not necessary if you can meet your tax liability via withholding, regardless of when during the year the withholding occurs. See the safe harbors section linked earlier. Thanks for the reminder. Based on my 2022 AGI, my plan is to withhold 110% of my 2022 fed taxes this year. I checked and NY has the same safe harbor policy. Does this mean if I were short on withholding come Nov, I could increase my withholding significantly in Dec and if I ended up meeting the 110% threshold, I wouldn’t face an underp...

I have equity funds, a NY muni, and a natl limited term exempt muni in my brokerage. When filing 1099-DIV, FreeTaxUSA asks "Is this a mutual fund that has U.S. Government interest income?" I answered NO. In the next screen it says: You entered tax-exempt dividends of $1,249 in Box 12 of your Form 1099-DIV. Is any of your $1,249 of tax-exempt dividends from a bond issued by the state you lived in (or by a municipality located in your state)? I put YES since I have VNYTX Vanguard New York Long-Term Tax-Exempt Fund Investor Shares - is this correct? While it's not a bond, it's a fund of muni bonds issued by NY state Then it says Enter the amount of your $1,249 of tax-exempt dividends that was from bonds issued by your state (or a mun...

With estimated taxes, there are four quarters that aren't really quarters. But do you need to send in the amount you predict you will owe in each true quarter (total taxes/4). Or do they expect Q1 (3/12 of taxes ) Q2 (2/12 of taxes) Q3(3/12 of taxes) and the Q4 (4/12 of taxes)? Am I over thinking this? You would overpay in Q2 and underpay in Q4 with 4 equal payments. Why not just have 4 actual 3 month quarters? I'm not sure. I'm still hunting for confirmation but I think you're supposed to assess tax liability for Q1 and if you expect to owe, you pay estimated taxes for that amount (if you have reason to be concerned about an underpayment penalty). In my case, the process for this land sale is likely to end mid-April and I should receive m...

I have two other questions: I have about $7k in capital losses to carryover to 2023. I expect $5k in capital gains taxes owed for this land sale. I will also have about $2k in dividend cap gains taxes. I assume my $7k in capital losses would offset all these cap gains, up to $7k? Correct. I'm also trying to figure out if I'll owe the net investment income tax. Am I supposed to include my gross proceeds of this land sale in my AGI calculation, even though I will only pay cap gains on the proceeds - cost basis? When it comes to AGI, I'm guessing all income applies regardless of how the IRS taxes it, right? AGI will only include cap gains income, not basis. Previous poster said my carryover losses don’t offset capital gains taxes, just capita...

I have about $7k in capital losses to carryover to 2023. I expect $5k in capital gains taxes owed for this land sale. I will also have about $2k in dividend cap gains taxes. I assume my $7k in capital losses would offset all these cap gains, up to $7k? Capital loss carryovers reduce current year capital gains, not current year capital gain taxes. E.g., if one has $5K in capital gain tax, assuming the 15% capital gain tax bracket, that implies a capital gain of $5K/15% = $33,333. The $7K capital loss carryover would be subtracted from the $33,333, not the $5K. Does that make sense? I'm also trying to figure out if I'll owe the net investment income tax. Am I supposed to include my gross proceeds of this land sale in my AGI calculation, even...

I'm in NYC. I've never paid state estimated payments before and always got a state refund. If after I estimate 2023 I calculate I owe to state, I'll pay estimated tax. I think when calculating my NY State tax liability, I'm supposed to aggregate both my NYS and NYC taxes withheld from my paychecks. Do you know if that's correct? Don't know, but https://www.tax.ny.gov/pdf/current_forms/it/it2105_9i.pdf might be helpful to you. thanks. This doc refers to NY State, NYC, Yonkers, etc. taxes together which suggests to me that I should account for my state and city taxes withheld when assessing my estimated tax payments, if any. When I pay my taxes each year I don't cut a separate check for NYC taxes, so that also supports grouping my state and ...

When I plug in my federal income tax withheld in the software to estimate my 2023 tax liability, do I just aggregate the Federal Income Tax amounts on my paystubs? Or do I also need to account for Social Security Tax and Medicare Tax withheld from my checks? Pretty sure I just include Federal Income Tax and disregard the other taxes, but just want to double check here. Just Fed Income Tax. You may also want to figure if your state requires estimated payments as well, most do - and typically it's based on a threshold of amount owed. https://support.taxslayer.com/hc/en-us/articles/360031917272-Do-I-have-to-make-State-Estimated-Payments- I'm in NYC. I've never paid state estimated payments before and always got a state refund. If after I esti...

When I plug in my federal income tax withheld in the software to estimate my 2023 tax liability, do I just aggregate the Federal Income Tax amounts on my paystubs? Or do I also need to account for Social Security Tax and Medicare Tax withheld from my checks? Pretty sure I just include Federal Income Tax and disregard the other taxes, but just want to double check here.

CAsage wrote: ↑Sun Mar 19, 2023 12:21 pm How was the "land sale" owned? You mentioned (not in a trust) so that's why I ask. If you owned it, what was your cost basis or is the $75k all profit? If by chance it was inherited, it's likely not to be taxable or the cost basis would be the day the prior owner passed. Just wondering.

It was my grandparents'. Passed to my father and uncle. When my father passed, his half went to my two brothers and me. I get 1/6 of the sale which is $75k. Last appraisal done was a while ago and my cap gains are about $30k.

How are you preparing your taxes for 2022? If you are using commercial software like Turbotax etc., you could just plug in your estimates of 2023 income into the 2022 software to get a general idea of what your taxes will be for 2023. It's likely to be a little conservative since tax brackets will be higher for 2023 taxes than for 2022. That's the first step. Once you see how your total taxes compare to withholding that you're already planning to do, you can go from there to decide whether to go the "additional withholding" or "estimated tax" route. I was going to do it manually so I could apply 2023 tax rates and the 2023 standard deduction. Not worth it? I use freetaxusa software and can try that as well. Let’s say th...

I found this via the Google: The New York state standard deductions for tax year 2022 (taxes filed in 2023) are: Single: $8,000. Single (claimed as dependent): $3,100. Married filing jointly or surviving spouse: $16,050. So the above it what you will use now (for your taxes due April 2023). If you are asking about the standard deduction you will use when you file your 2023 taxes (in April of 2024) - I'm guessing they won't announce until late 2023 or early 2024.... I'm totally taking a wild guess about this. I don't know nothing about New York State Taxes.... I’m trying to figure out my tax liability in 2023 to inform how much I pay in estimated tax this year. I need to 2023 standard deduction to figure this out. I guess I can plan for $8k...

Thanks for the thorough response. Now I understand how it works. I’ll wait till mid April to decide then.

What is the 2023 NY State standard deduction? I can't find it anywhere. 2022's was $8k.

When does Treasury Direct announce new iBond rates?

I was told to wait till then to decide whether to lock in the current rate or buy when the new rate goes into effect.

I'm evaluating my 2023 tax liability to figure out if I should make estimated tax payments, increase my tax withholding, or both. When I do this, should I calculate my tax liability per quarter? I'm supposed to receive about $75k in proceeds from a land sale by April (land was not put in a trust) and I suspect about $35k in long term cap gains. I also received my annual work bonus recently, but my single, zero status should cover it. The rest of my income will be pretty evenly spread across the year. This is what I've done so far. Need to plug in the rest of the actual #s. Where I've included #s already, it's for the full year. MY FEDERAL PROJECTIONS  $  taxable work income: $205k gross salary + $ bonus payout in March 2023 - $22,500 401k c...

I took a first pass at doing my fed taxes using FreeTaxUSA and ran into some roadblocks. Would really appreciate some guidance. 1. 1099-DIV When filing 1099-DIV, FreeTaxUSA asks "Is this a mutual fund that has U.S. Government interest income?" do I check yes? two of the funds in question are munis (NY and natl limited term tax exempt) but the rest aren't. I listed my amount ($1249) in tax-exempt dividends in box 12. I also specified the amount of the $1249 that is from bonds issued by NY, where I live. I'm then asked "You've told us that this mutual fund has U.S. Government interest income. This income is not taxed by states. Enter the amount of your $21,486 of ordinary dividends that are from U.S. Government interest:"...

Bump for my last few posts here. Hoping to get replies on these for my taxes.

I’m confused by your question: Doesn’t column 1 tell you the foreign source income for each listed fund? And isn’t the answer 100% for each of your funds? I’m not sure. Are you saying I’m supposed to multiply what’s in col 1 by the total dividends I received for the fund? Do the same for each fund. Then add the results together. If I do that, the end result is much larger than in previous years. I get the correct result in the software ($511 ftc applied) but I don’t think my formula is correct. Multiplying the F% (likely to be 99 or 100%) by total divs is exactly what do to. Thanks, I added up the dividends I received per fund x 100% (from the Vanguard form), then added the results for the two funds together to calculate foreign source inc...

Random Poster wrote: ↑Sat Mar 11, 2023 4:39 pm I’m confused by your question: Doesn’t column 1 tell you the foreign source income for each listed fund?

And isn’t the answer 100% for each of your funds?

I’m not sure.

Are you saying I’m supposed to multiply what’s in col 1 by the total dividends I received for the fund? Do the same for each fund. Then add the results together.

If I do that, the end result is much larger than in previous years. I get the correct result in the software ($511 ftc applied) but I don’t think my formula is correct.

Soaky wrote: ↑Sat Mar 11, 2023 5:07 pm The 2022 version of Vanguard's foreign tax credit information is exactly the same format as the 2021 version.

Maybe Vanguard changed the info in 2021 then. I’m looking at 2020 and the doc has different info.

Struggling with foreign tax credit this year.

I held two intl funds in 2022: Vanguard FTSE All-World ex-US Index and Vanguard Total Intl Stock Index

Here is the 2022 version of Vanguard's foreign tax credit doc: https://www.vanguard.com/pdf/FTC_2023.pdf

Which number(s) do I use from this sheet and what's the formula to calculate foreign source income?

The data provided in the 2022 doc is a bit different from prior years. In the past, i added up my foreign tax paid for a single mutual fund, then multiplied the total by the second column in the Vanguard sheet, which was Foreign income = total foreign tax X. This column doesn't appear in the 2022 sheet.

Thanks for the hand.

4. 1099-B for TLH I TLH'd about 15-20 lots each of my two international mutual funds in 2022. When i entered the information from my 1099-B for long term losses, my fed tax liability didn't change—why? I didn't have any capital gains last year. On schedule D, box 16 is -9,023 (the total amount of losses for both funds) but box 21 is -1500. Shouldn't it show -3k? This way, I'd have $6,023 to carryover to 2023. The income tax summary in the software shows -1500 for capital gains. I recommend continuing to make adjustments in the tax software until it gives the result you expect. If you didn't realize any gains in 2022 and you had total realized losses of $9023, then $3k should be deducted from ordinary income and the remaining $6023 carried ...

SconnieBro wrote: ↑Sat Mar 11, 2023 1:47 pm https://thefinancebuff.com/how-to-backd ... axusa.html

Thanks SconnieBro, worked like a charm.

… 2. Backdoor Roth In 2022 I executed a backdoor Roth for the first time. … I contributed $6k … to TIRA. When I converted it to my Roth…, the $6k cash was worth $6k and pennies. … Where do I enter the cost basis for the Roth conversion? The software asks me if I made any IRA contributions in 2022 and to specify the amount per TIRA and/or Roth. I entered $6k for TIRA only and my fed taxes owed was reduced by $1920. How do I validate that this the correct outcome? The software also asks "'Did you withdraw any traditional IRA contributions by the tax filing due date?' I put $6k here but I'm not 100% sure if a conversion is treated as a withdrawal by the IRS. … I do not use FreeTaxUSA. If entering the $6k TIRA contribution causes your fed...

I took a first pass at doing my fed taxes using FreeTaxUSA and ran into some roadblocks. Would really appreciate some guidance. 1. 1099-DIV When filing 1099-DIV, FreeTaxUSA asks "Is this a mutual fund that has U.S. Government interest income?" do I check yes? two of the funds in question are munis (NY and natl limited term tax exempt) but the rest aren't. I listed my amount ($1249) in tax-exempt dividends in box 12. I also specified the amount of the $1249 that is from bonds issued by NY, where I live. I'm then asked "You've told us that this mutual fund has U.S. Government interest income. This income is not taxed by states. Enter the amount of your $21,486 of ordinary dividends that are from U.S. Government interest:"...

I took a first pass at doing my fed taxes using FreeTaxUSA and ran into some roadblocks. Would really appreciate some guidance. 1. 1099-DIV When filing 1099-DIV, FreeTaxUSA asks "Is this a mutual fund that has U.S. Government interest income?" do I check yes? two of the funds in question are munis (NY and natl limited term tax exempt) but the rest aren't. I listed my amount ($1249) in tax-exempt dividends in box 12. I also specified the amount of the $1249 that is from bonds issued by NY, where I live. I'm then asked "You've told us that this mutual fund has U.S. Government interest income. This income is not taxed by states. Enter the amount of your $21,486 of ordinary dividends that are from U.S. Government interest:" ...

beachtech wrote: ↑Sun Mar 05, 2023 2:07 pm Adjusted for dividends and inflation, that’s -24.8%: https://totalrealreturns.com/s/VTSAX?st ... 2023-01-01 (my side project website)

Thanks for sharing. But doesn’t Portfolio Visualizer adjust for dividends and inflation? Why the disparity between yours and PV?

You can't get it from looking at just the chart. Look at the performance that is reported on sites such as Morningstar. https://www.morningstar.com/funds/xnas/vtsax/performance You will see the return for 2022 was -19.53% Where is that listed? I’m on my cell so maybe it’s a limitation of mobile view but I don’t see a way to assess 2022 return including dividends. Try : https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2022&firstMonth=1&endYear=2022&lastMonth=1&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&...

RyeBourbon wrote: ↑Sun Mar 05, 2023 12:31 pm You can't get it from looking at just the chart. Look at the performance that is reported on sites such as Morningstar.
https://www.morningstar.com/funds/xnas/ ... erformance

You will see the return for 2022 was -19.53%

Where is that listed? I’m on my cell so maybe it’s a limitation of mobile view but I don’t see a way to assess 2022 return including dividends.

Basic investor question here. If I look at VTSAX from Jan 1, 2022 to Jan 1, 2023, as an example, there’s a change in the value between the two daily market closes. There are also dividends paid to investors. How does one analyze a mutual fund chart to assess the fund’s return accounting for the difference in share price and dividends paid? When folks say X fund is down Y% it seems they’re usually just referring to the share price differential, not the dividends too. Dividend history is accessible for any fund. So what’s the formula to calculate return? Take my VTSAX example above. I understand dividends reduce the NAV but this is offset by awarding investors new shares at the lower NAV. The end result is that the total value of the investor...

No I’m not, actually. Point “b” above is demonstrably false for most situations. I’m not sure why it’s so hard for people to understand that you still have the money even when it’s invested, it’s just a little more volatile, and job loss is not as correlated to the stock market as people think. And it’s an error to discount how much more returns you get (long term) by keeping your money deployed, especially if you can afford the risk as stated above, and as OP clearly can. You still have the money but you don't want to be forced to sell at an inopportune time. The other piece to it is how aggressively you want to go. Most folks here think even a 90/10 portfolio suggested by Mr. Buffett is too aggressive. I'm actually curious which AA you p...

... The lawyer advised us that NY State requires an estimated tax to be paid at the time of closing which is a form IT 2663 which is estimated to be approximately 8.8% of the incremental value of the property from when my grandmother passed away. The lawyer is looking for documentation of the property value when my grandmother passed. If none is found, we've been advised to use $1500 per acre as the basis. Recent property sales have been in the $2000-$2500 per acre and this inheritance was 15 years ago. Our land sale is for approximately $4450 per acre. I don't know if using $1500 per acre as a basis is sound advice given we wouldn't have paperwork to back it up. The estimated tax payment is 10.9% of the gain. See Form IT-2663, page 2: htt...

AnnetteLouisan wrote: ↑Sat Mar 04, 2023 1:05 pm If you’re lucky enough to live in one of the five boroughs of nyc, there’s also municipal cap gains tax.

Yes, I have the pleasure of paying city cap gains also.

My EF has been in a Capital One 360 savings for a few years. Currently has a 3.4% APY. I like the liquidity but considering my EF is enough for 1 year of expenses, I don’t really need all of it to be immediately liquid. Should I take a portion of my EF and invest in a CD ladder? How would you approach this? As for the size of my EF, I prefer to hold a year’s expenses bc my industry is volatile and I’ve been laid off before. One time it took over 6m to find a new job. What’s your net worth? If it’s more than 5X your annual living expenses, you probably don’t need a cash emergency fund: https://earlyretirementnow.com/2021/05/26/the-emergency-fund-is-still-useless/ Net worth is about $2M. This is much more than 5x my annual expenses. If one d...

I vote for T-Bills, paying around 5% and exempt from state/local taxes. Started reading about T-Bills. One article said there's a reinvestment rate risk: when bill matures, if rates go down you will be reinvesting at a lower rate. How much time do you get to determine whether to reinvest or liquidate a T-Bill? I'm in NYC so having the state and local tax exemption would be helpful. Right now I pay fed/state/city on my high yield savings. My EF amount is enough to carry me through a year. I think I could lock up 30% of my EF in a 26-week T-Bill with confidence I wouldn't need the money before maturity. What about Treasury Bonds and ETFs vs T-Bills? Treasury ETFs would face the same exact reinvestment risk. Actually all fixed income would. I...

I vote for T-Bills, paying around 5% and exempt from state/local taxes. Started reading about T-Bills. One article said there's a reinvestment rate risk: when bill matures, if rates go down you will be reinvesting at a lower rate. How much time do you get to determine whether to reinvest or liquidate a T-Bill? I'm in NYC so having the state and local tax exemption would be helpful. Right now I pay fed/state/city on my high yield savings. My EF amount is enough to carry me through a year. I think I could lock up 30% of my EF in a 26-week T-Bill with confidence I wouldn't need the money before maturity. What about Treasury Bonds and ETFs vs T-Bills? Treasury ETFs would face the same exact reinvestment risk. Actually all fixed income would. I...

My EF has been in a Capital One 360 savings for a few years. Currently has a 3.4% APY. I like the liquidity but considering my EF is enough for 1 year of expenses, I don’t really need all of it to be immediately liquid. Should I take a portion of my EF and invest in a CD ladder? How would you approach this? As for the size of my EF, I prefer to hold a year’s expenses bc my industry is volatile and I’ve been laid off before. One time it took over 6m to find a new job. What’s your net worth? If it’s more than 5X your annual living expenses, you probably don’t need a cash emergency fund: https://earlyretirementnow.com/2021/05/26/the-emergency-fund-is-still-useless/ Net worth is about $2M. This is much more than 5x my annual expenses. If one d...

My normal recommendation is not to hold more than half your bonds in munis from a single state; investors in a high tax bracket who must hold bonds in a taxable account should hold 100% munis. However, in NYC, you probably want to hold only NY munis and Treasury bonds in your taxable account, since your state and city tax is so high. So the amount you should hold in TIPS depends on how sensitive you are to the risk of inflation. My recommendation is more that if you do hold TIPS, they should be in your taxable account. Given my 20 year time horizon before retirement, would a 10 year TIPS be the right maturity? I can hold it with confidence to that term without needing the cash. 30 years? Not as clear. You should match the expected time hor...

... The lawyer advised us that NY State requires an estimated tax to be paid at the time of closing which is a form IT 2663 which is estimated to be approximately 8.8% of the incremental value of the property from when my grandmother passed away. The lawyer is looking for documentation of the property value when my grandmother passed. If none is found, we've been advised to use $1500 per acre as the basis. Recent property sales have been in the $2000-$2500 per acre and this inheritance was 15 years ago. Our land sale is for approximately $4450 per acre. I don't know if using $1500 per acre as a basis is sound advice given we wouldn't have paperwork to back it up. The estimated tax payment is 10.9% of the gain. See Form IT-2663, page 2: htt...

You can get your asset allocation automatically with Quicken. There’s some work involved in putting everything into Quicken initially. But afterwards, you can download new transactions and then run a report showing your asset allocation (for one account or across multiple accounts). If you are reinvesting dividends/capital gains using your settlement account more often than quarterly, you are making extra work for yourself. It just isn’t necessary — in terms of increasing long-run returns — to reinvest the cash more often. Why are you including savings and checking account balances in your asset allocation? You should have a target asset allocation for your retirement accounts, and make reinvesting decisions for those accounts based on tha...

I wish I could plug my accounts into a program that spits out my AA automatically, but I'm not aware of a way to do that. In my portfolio I have a taxable account with mutual funds; a Roth IRA with mutual funds and an ETF; a 401k with mutual funds; an online savings account where I keep my EF and my paychecks go; regular checking and savings accounts, where I have a direct deposit set up with my checking; iBonds; and some treasury bonds. For me to calculate my AA, I have to tally everything up manually. Note, my taxable account and Roth are with eTrade but my 401k is with Fidelity so I can't rely on one of them to provide me with an AA automatically, cash aside. I’ve made my portfolio review tool support importing Fidelity account informat...

Marseille07 wrote: ↑Sun Feb 19, 2023 1:17 pm I reinvest manually. I have a spreadsheet that performs all the calculations after I plug in my account balances. Takes about 5 minutes per month, which isn't an issue.

Are you willing to share the spreadsheet template? Does it just contain slots for all your holdings and balances with preset formulas to tally up your equities, bonds, cash, and AA?

Moving forward, as per all the advice here, I'll reinvest dividends in my taxable on a quarterly basis. All the dividends get put into a money market at eTrade, where they'll sit until I reinvest.

The facts are confusing. Property included in an estate for estate tax purposes takes a new basis equal to the estate tax value (generally the date of death value). You can check the Federal estate tax return, or if none then the state estate tax return, or if none then you'll have to determine the date of death value. In the case of a gift, the donee takes the donor's basis, increased by the gift tax paid on the appreciation (or, at one time, the entire gift tax). However, if the property dropped in value, then for purposes of loss the donee's basis is the value at the time of the gift. For example, if the donor's basis was 100 and the value at the time of the gift was 90, if the donee sells for more than 100, the gain is the excess of th...

anon_investor wrote: ↑Sun Feb 26, 2023 7:19 pm I vote for T-Bills, paying around 5% and exempt from state/local taxes.

Started reading about T-Bills. One article said there's a reinvestment rate risk: when bill matures, if rates go down you will be reinvesting at a lower rate. How much time do you get to determine whether to reinvest or liquidate a T-Bill? I'm in NYC so having the state and local tax exemption would be helpful. Right now I pay fed/state/city on my high yield savings.

My EF amount is enough to carry me through a year. I think I could lock up 30% of my EF in a 26-week T-Bill with confidence I wouldn't need the money before maturity.

What about Treasury Bonds and ETFs vs T-Bills?

You might consider the following decision tree: 1. Do you have room to put the TIPS in a tax-deferred account? 2. Are you absolutely positive that you won't need the TIPS money prior to maturity? If you can answer "Yes" to both of those, then TIPS would probably be your better choice. If not, then the I Bonds may well be your better choice, since they're tax-deferred and you can never lose principal, regardless of when you redeem them (anytime between one and 30 years). While this is normally the case, point #1 is not valid with current rates. I-Bonds yield 0.4% above inflation, while long-term TIPS yield about 1.6% above inflation. Even with the loss of tax-deferral, the TIPS should come out ahead if held to maturity. And in NYC...

My EF has been in a Capital One 360 savings for a few years. Currently has a 3.4% APY. I like the liquidity but considering my EF is enough for 1 year of expenses, I don’t really need all of it to be immediately liquid. Should I take a portion of my EF and invest in a CD ladder? How would you approach this?

As for the size of my EF, I prefer to hold a year’s expenses bc my industry is volatile and I’ve been laid off before. One time it took over 6m to find a new job.

I’m 41 and aim to retire around 60. I have a portfolio with equities and muni funds in my taxable account, equities in a Roth, and a little equities and a bond index in my 401k. AA is 69/31. The last couple years I invested some in iBonds for inflation protection rather than keeping the money in a high yield online savings. I’m in NYC and pay federal state and city tax on ordinary income. Considering TIPS rates are higher than iBonds now, I’m considering investing in them instead of iBonds. From a tax efficiency standpoint, would this make sense for me? I read with TIPS I’d have to pay federal income tax. I expect to be in the 32% bracket in 2023. If TIPS makes sense, am I better off investing in a TIPS mutual fund in my taxable account or ...

The facts are confusing. Property included in an estate for estate tax purposes takes a new basis equal to the estate tax value (generally the date of death value). You can check the Federal estate tax return, or if none then the state estate tax return, or if none then you'll have to determine the date of death value. In the case of a gift, the donee takes the donor's basis, increased by the gift tax paid on the appreciation (or, at one time, the entire gift tax). However, if the property dropped in value, then for purposes of loss the donee's basis is the value at the time of the gift. For example, if the donor's basis was 100 and the value at the time of the gift was 90, if the donee sells for more than 100, the gain is the excess of th...

cchrissyy wrote: ↑Sun Feb 26, 2023 12:38 pm OP, the answer will be more complicated in your case since part of the property you got as inheritance and part as a gift. furthermore the gift part may go back another level to did your dad get it as inheritance or gift or was he the original and sole purchaser.

edit- ok he inherited it so the question - for the portion you were given while he was alive - becomes the value at that time and did he inherit the whole thing or was it shared with anyone else.

He inherited half the land and deeded his half to his 3 sons, myself included.

Freeadvice wrote: ↑Sun Feb 26, 2023 11:49 am Date of death of your grandfather.

What if the land wasn’t appraised then? Would my cost basis be the fair market value when it was most recently appraised before my grandfather passed away? That was 2006.