Capital Gain Tax on Assets Inherited (2010)

Under the Tax Act of 2001, the federal estate tax is gradually reduced until its repeal for the year 2010. Congress will need to vote to finalize the repeal if it is to continue past 2010.

During the year 2010, there will be no federal estate taxes, however, beneficiaries of the estate will receive the same income tax basis as held by the decedent, subject to an exemption of $1,300,000. (If the assets pass to the surviving spouse, the exemption will be $4,300,000.) When these assets are sold by the beneficiaries, taxes on capital gains will be determined from this carried-over basis. This calculator estimates this potential unexpected tax.

Capital Assets
1. Estate Size at Death
2. Cost Basis
3. Other Adjustments (+/-)1
4. Marital Status (Assets Passed to)
Capital Gain: $ 
Less Exemption: $ 
Net Gain: $ 
Capital Gain Tax2: $ 
Note: The current Estate Tax Law has recently been subject to major changes. As with all of our calculators, this calculator is correct to the best of our knowledge. Always personally visit and consult with a qualified financial professional when making any financial decision.

1. Basis may be increased by costs of improvement, decreased by depreciation, etc. You must estimate any change between now and 2010.

2. This calculator assumes a capital gain tax rate of 20%.