HOLY ****!!

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Posted By: Joann

OK - not sure if I have this right on taxes, but here goes.

Assume that the personal estate tax exemption - $2mm in 2007 - will cover all or most of the value of the cards, so estate tax is minimal.

Sky now takes these on the stepped-up basis - meaning that it is as if he bought them this year and paid current value. So if he sells them this year, or within a reasonably short time, he would only pay taxes on the increase in value from the time he came into possession until the time he sold/sell them (if he does). So taxes on a sale would be far lower than if he had to pay taxes on the face value of a sale.

Am I missing something here? If the estate tax is minimal because of the personal exemption (I know - big assumption there), and he takes on stepped-up basis, it seems to me that there may not be huge tax implications. The only X factor is the South Carolina estate tax law.

At any rate sky - see a tax lawyer, but it might not be all that bad.

OK guys. Go ahead and ring in with any and all holes in the analysis above.

J