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San Diego Office: (619) 283-7113
Julian Office: (760) 765-0343
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• Stay prepared to sell your businessPage: 1 2 3
• Great uses for your tax refund
• How to File Nonprofit Taxes
• 7 Common Missing Tax Return Items
• Is a Tax Surprise Waiting for You?
• School yourself on the student loan interest deduction
• The 6 Biggest Threats to Your Finances
• Last-Second Money-Saving Tax Moves
• Retirement Contributions Get a Boost in 2019
• 5 Estate Planning Myths
• Disaster Preparedness Tips for Taxpayers and Businesses
• Five Tax Breaks for New Parents
• Setting up Your Business Accounting System
• Ideas to Improve Your Financial Health
• It's tax-planning time
• Managing Money Tips for Couples
• 6 tax benefits of owning a home
• Five Great Finance Tips Everyone Should Know
• How to handle a gap in health care coverage
• Update on the Tax Cuts and Jobs Act
• When an extension makes sense
• Tax checklist for business startups
• Answers to commonly asked tax questions
• New FASB Standards for Nonprofit Accounting
• The best way to avoid an audit: PreparationPage: 1 2 3
• Boost your retirement savings now
• IRS Urges Travelers Requiring Passports to Pay Their Back Taxes
• Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds; Beware of Fake Calls to Return Money to a Collection Agency
• How to Get a Green Light for Commuting Expense Deductions
• Federal requirements for substantiating charitable contributions
• How to cut taxes under the new tax act
• FBI Warns of Online Dating Scams
• IRS issues 2018 standard mileage rates
• Year-end tax checklist
• The Equifax breach and you: be proactive
• Beware of Bogus Charities
• Planning A Wedding Over The Holidays?
Plan For Taxes Too
• Don't Include The IRS On Your Gift List
• Ready To Start Year-End Planning?
Focus On The Big Picture.
• Know When To Sell
• Put Your Tax and Financial House
• Are You Prepared For These Common
• Scams Against the Elderly:
Know the Danger Signs
• Tax Benefits of Corporate Retirement
• Maneuvering the Corporate
Retirement Plan Maze
• Documenting your Business Travel andPage: 1 2 3
• Maximizing your Travel and
• Deducting Business Meals and
• Do Yourself a Favor by Filing
• Do I Need A CPA?
• How to Save Money on Your Tax
• What To Do If You Can't Pay
• What To Do If You Haven't Filed
Don't Include The IRS On Your Gift List
Suppose a relative gives you an expensive painting. Several years later, your relative dies and you decide to sell the painting. Your accountant says you'll owe capital gain tax on the sale, and asks for your basis in order to reduce the amount on which you'll pay tax. What's your answer?
When you sell property received as a gift, the general rule is that your basis is the donor's cost basis. If you sell at a loss, your basis is the lower of the donor's basis or the fair market value on the date you received the gift. These numbers are adjusted in some cases. But without cost records, you have no way of proving the donor's basis and no way of saving yourself tax dollars.
If asking for records of the cost when you receive a gift seems inappropriate, explain why you want to know to help make the conversation less awkward. No one likes to pay unnecessary taxes. Having the same conversation about the cost of valuable gifts you received in prior-years is also worthwhile.
If you're the gift-giver, offer the additional gift of presenting the cost records to the recipient at the same time. Otherwise, you may end up giving an unintended gift to the IRS in the form of unnecessary taxes.
Mailing Address: P.O. Box 1934, Julian, CA 92036
Julian Office: 2902 Washington Street, Julian, CA 92036 (760) 765-0343 (760) 765-0150 Fax
San Diego Office: (By Appointment Only) 3751 37th St., #2, San Diego, CA 92105 (619) 283-7113
Correspondence: P.O. Box 1934, Julian, CA 92036 E-mail: rebecca(at)luersdyercpa.com jan(at)luersdyercpa.com
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