{"id":4446,"date":"2017-01-11T12:14:54","date_gmt":"2017-01-11T17:14:54","guid":{"rendered":"https:\/\/www.lindabury.com\/firm\/?p=4446"},"modified":"2025-12-31T14:30:09","modified_gmt":"2025-12-31T19:30:09","slug":"basis-considerations-in-lifetime-gift-planning-in-new-jersey","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/basis-considerations-in-lifetime-gift-planning-in-new-jersey.html","title":{"rendered":"Basis Considerations in Lifetime Gift Planning in New Jersey"},"content":{"rendered":"<p>A previous article appearing in <em>Planning Matters<\/em> discussed the use of lifetime gifts to reduce New Jersey estate taxes.\u00a0 The article pointed out that although there can be advantages to lifetime gifts, there are situations where embarking on a lifetime gifting program in New Jersey is ill-advised. \u00a0This article will address some of those circumstances where lifetime gifts will not result in a tax benefit.<\/p>\n<p>The starting point for this discussion is the income tax concept of basis.\u00a0 Basis is relevant for determining the gain realized from the sale or other disposition of property for capital gain tax purposes.[1]\u00a0 In general, the basis of property is the cost of the property to the taxpayer.[2]\u00a0 There are special rules with respect to basis where property is acquired by lifetime gift and where property is acquired from a decedent.<\/p>\n<p>In the case of property acquired from a decedent\u2019s estate, Section 1014 provides the general rule that the basis of property in the hands of a beneficiary is the fair market value of the property at the date of the decedent\u2019s death.\u00a0 This concept is oftentimes referred to as \u201cstepped-up basis\u201d because the taxpayer receives a free step-up in basis to the value of the property at the time of the decedent\u2019s death without being subjected to the payment of a capital gain tax.[3]<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/basis-considerations-in-lifetime-gift-planning-in-new-jersey.html\"  title=\"Continue Reading Basis Considerations in Lifetime Gift Planning in New Jersey\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A previous article appearing in Planning Matters discussed the use of lifetime gifts to reduce New Jersey estate taxes.\u00a0 The article pointed out that although there can be advantages to lifetime gifts, there are situations where embarking on a lifetime gifting program in New Jersey is ill-advised. \u00a0This article will address some of those circumstances [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65,343],"tags":[],"coauthors":[139],"class_list":["post-4446","post","type-post","status-publish","format-standard","hentry","category-insights","category-wills-trusts-estates-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Basis Considerations in Lifetime Gift Planning in New Jersey &#8212; January 11, 2017 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. Firm News &amp; Events<\/title>\n<meta name=\"description\" content=\"A previous article appearing in Planning Matters discussed the use of lifetime gifts to reduce New Jersey estate taxes.\u00a0 The article pointed out that\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lindabury.com\/firm\/insights\/basis-considerations-in-lifetime-gift-planning-in-new-jersey.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Basis Considerations in Lifetime Gift Planning in New Jersey &#8212; January 11, 2017 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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