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Simple English definitions for legal terms

alternate valuation date

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A quick definition of alternate valuation date:

An alternate valuation date is a date that is six months after a person has died. When someone dies, their property can be appraised either on the date they died or on the alternate valuation date. This is important for tax purposes because it determines the value of the property and how much tax needs to be paid. Basis is the value assigned to a person's investment in property and is used to calculate gain or loss from a transfer of the property. Adjusted basis is the basis increased by capital improvements and decreased by depreciation deductions. Stepped-up basis is the basis of property transferred by inheritance and equals the fair market value of the property on the date of the decedent's death or alternate valuation date.

A more thorough explanation:

Definition: The alternate valuation date is a tax law term that refers to the date six months after a person's death. The estate can choose to appraise the deceased person's property either as of the date of their death or as of the alternate valuation date.

Example: If a person dies on January 1st, their estate can choose to value their property as of January 1st or as of the alternate valuation date, which would be July 1st.

This term is important for tax purposes because it affects the basis of the property. Basis is the value assigned to a taxpayer's investment in property and is used to calculate gain or loss from a transfer of the property. The basis can be adjusted by capital improvements and depreciation deductions. The stepped-up basis is the basis of property transferred by inheritance and equals the fair market value of the property on the date of the decedent's death or the alternate valuation date.

Example: If a person inherits a house from their grandmother, the stepped-up basis would be the fair market value of the house on the date of their grandmother's death or the alternate valuation date, whichever is chosen by the estate.

Overall, the alternate valuation date is an important consideration for estates when determining the value of property for tax purposes.

alternate legacy | alternatim

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triplethread
21:57
Um tasteless I put students
can u tell me what the pros and cons are
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triplethread
21:58
Biases about what
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triplethread
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triplethread
21:59
That’s what went through my head
triplethread
22:00
Wasp and I got in too so maybe it worked
time to open the whiskey
CynicalOops
22:04
what kind of whiskey u drinking
CynicalOops
22:04
i got hella whiskey
finishing this bottle of makers
what do I buy next
CynicalOops
22:08
oh i have some makers in my car
CynicalOops
22:08
for when the road gets tough
CynicalOops
22:08
get some macallan
12,15?
CynicalOops
22:17
let me see
CynicalOops
22:17
i usually have 12
is it good
CynicalOops
22:18
yeah i like it
CynicalOops
22:18
i have some oban 14 too
CynicalOops
22:18
i dont know shit about whiskey but i have been drinking a lot of it lately
it hits man
at bars I do tequila but at home? whiskey
LSD is gonna think I'm an alcoholic
CynicalOops
22:21
nah
CynicalOops
22:21
im a fan of tequila too
CynicalOops
22:22
usually just beer at a bar for my wallet tho
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