Carryover Basis

外汇网2021-06-19 13:53:40 137

A method for determining the tax basis of an asset when it is transferred from one inpidual to another. Carryover basis is often used when property is given as a gift to someone else and is the method for determining the basis for future tax payments.

The carryover basis is commonly used in estate planning when transferring property to future heirs. It determines the value of the property at the beginning of the period and is used to determine the tax rate that must be paid on capital gains when the asset is sold.

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