Sale of Business Building

Forum|Forum|1 year ago
May 30, 2025
1 reply
12 views

Happy Weekend!

I have a prospective client whose spouse passed a few years ago. They married a little later in life and he had an established business with a building and property. She wants to sell the building/property now but is afraid of the taxable ramifications. It's been a long week, and I think I am overthinking this one, but is it just whatever gain there is from the step up in basis from when he passed even though they are married?

Thanks everyone,

Dawn

ProSeries Professional

This topic has been closed for replies.

BobKamman

Level 15

Community property state? Was her name ever added to the business and building? Joint tenancy or probate?

SensibleandHourlyAuthor

Level 6

HI Bob,

No, not a community property state, we are in Michigan. I doubt her name was added but I will double-check.

Thank you for commenting.

Dawn

BobKamman

Level 15

Another case of the tax tail wagging the obvious-financial-decision dog? She's afraid of paying tax, but not of continuing the business? Or maybe she knows it has to be sold, and is just asking how much of the proceeds will be needed for taxes. It sounds like there is an estate involved here, so the answer depends on what other assets it owns and what it plans on doing with them. And it's not just payment of taxes she should be concerned about - probably not much, because any gain might be offset by selling and administrative expenses -- but payment of other estate debts.

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