House with large imbedded capital gains-- Is it safe to put it in Ch 7???

Yahoo Bot · Wed Jul 11, 2012 5:48 pm

Pat:
You're right. This is a referral from a tax attorney who wants to stay
involved, so you'd think he'd know that. You really honed in on what I
need to ask him about that. Thank you.
Steve

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Yahoo Bot · Wed Jul 11, 2012 5:46 pm

Steve:
If she inherited it, the basis would have been stepped up to the date of
death value. She would not have taken it at the decedent's basis. So
unless she is really old and she inherited a long time ago, her basis should
be much higher.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com

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Yahoo Bot · Wed Jul 11, 2012 5:14 pm

I have a potential client that has a rental with substantial equity in
it. However, there are huge embedded capital gains in this house
because she inherited it with an $8,000 basis. It is now worth
$350,000, and has about $250,00 of loans on it.
I plan to have a full analysis of this for a Chapter 7 Trustee prior to
the 341A that will show there will be nothing net of tax for the estate.
However, I've never done this before and occasionally trustees get a
little feisty and/or just want to prove they are smarter than me (not
hard to prove, but it seems to tickle them)
So I'm giving this out the group in the hopes you can first tell me why
I'm wrong and this house may be sold.
Thank you in advance.
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
>

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