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by CareyBot

DEAR BOB: In 2000, my wife's parents both passed away within a month of each other. They left their estates to my wife and her brother. The estate was worth more than $650,000 so they paid estate taxes. Part of the estate was a property in Sarasota, Fla. At the time of the inheritance, it was valued at $1,600. My wife and her brother recently sold that property for $53,000 and split the proceeds. Do they need to pay taxes on the $53,000? How can they avoid paying taxes? – Larry C. DEAR LARRY: The capital gain on the sale of that property was $53,000 minus its $1,600 "stepped-up basis" market value in 2000 at the time of the inheritance. Your wife's taxable share is presumably half of that capital gain. Purchase Bob Bruss reports online. The co-owners could have made a tax-deferred In...