Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Sep 01, 2010 |
referred to rules |
Senate Bill S8478
2009-2010 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Rules Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-S8478 (ACTIVE) - Details
- Current Committee:
- Senate Rules
- Law Section:
- Tax Law
- Laws Affected:
- Amd §612, Tax L
2009-S8478 (ACTIVE) - Sponsor Memo
BILL NUMBER:S8478 TITLE OF BILL: An act to amend the tax law, in relation to adjusting the federal adjusted gross income for personal income tax purposes PURPOSE: To address the issue of a double-tax by New York State on inherited property. SUMMARY OF PROVISIONS: Section 1. Amends subsection (c) of section 612 of the tax law by adding a new paragraph 39. Section 2. Effective date. JUSTIFICATION: Before the 2010 repeal of the federal estate tax the liability for the tax was computed on the fair market value of the prop- erty included in the estate. That value became the value an heir used to report any gain or loss when inherited property was sold. This resulted in only one tax, at the estate level, being collected. Although the federal estate tax was repealed for 2010 something called carryover basis was enacted. Now when an heir sells inherited property they pay the capital gain tax the decedent never did. For example, if the decedent paid $1 for a painting that was worth $1 million at death and the heir sold it $1 million, the heir reports a $1 million profit (less the $1 paid for the painting) on their federal tax return. Here again only one tax is paid. This time by the heir and not the estate.
2009-S8478 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8478 I N S E N A T E September 1, 2010 ___________ Introduced by Sen. C. JOHNSON -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to adjusting the federal adjusted gross income for personal income tax purposes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 39 to read as follows: (39) IN THE CASE OF A SALE OF PROPERTY ACQUIRED FROM A DECEDENT WHO DIED AT A TIME WHEN SECTION 1022 OF THE INTERNAL REVENUE CODE APPLIED FOR FEDERAL INCOME TAX PURPOSES, THE GAIN OR LOSS ON SUCH SALE SHALL BE ADJUSTED BY RECALCULATING THE BASIS OF SUCH PROPERTY WITHOUT CONSIDERING SECTION 1022 OF THE INTERNAL REVENUE CODE AND APPLYING SECTION 1014 OF THE INTERNAL REVENUE CODE AS IT WAS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND NINE. S 2. This act shall take effect on the sixtieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD18092-01-0
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