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Courtesy of Jack Meck and Cathy Thompson of Eckert Seamons--more bad and unclear news from the Bureau of Inheritance Tax for those who have suspended the values on real estate pending sale. "Effective immediately" the Department is taking the position that the suspension will last no longer than 15 months from the date of death (in other words a 6 months extension).

I have attached the Tax Update from the Department of Revenue.

Not an inherently unreasonable position, frankly, but a tough time to do it. One point though--if you do file based on a value that is high compared to the eventual sales price, note that the capital gains tax rate (generally 15% and 3.07%) is higher than the Inheritance Tax, so a higher value may actually be advantageous depending upon all of the facts and circumstances.

However, what does "Effective Immediately" mean. I assume that if you are already past the 15 months, you need to establish a value now. If someone has a definite answer on this, if you email me,I will pass it on.

Cheers!

PA Inheritance Tax Suspension for Real Estate Limited to 15 Months

Please read the important information relating to tax advice at the bottom of this web page.

Best regards,
Bob Wolf, Moderator

“Any tax advice in the foregoing message was not intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties that may be imposed with respect to the matters addressed. Some of that advice may have been written to support the promotion or marketing of the transactions or matters addressed within the meaning of IRS Circular 230, in which case, be advised that the advice was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.”