Ask Ed: Financial Planning Questions And Answers

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Written by Ed Mahaffy | Posted in Ask Ed: Financial Planning Questions And Answers

Ask Ed: Financial Planning Questions And Answers

Question: Under the proposed Biden tax plan, what will happen to the step-up in cost basis rule that for many years has provided heirs with the advantage of using the date-of-death valuation for inherited assets?

Answer: It will be eliminated.

Question: What is the correct order for using capital losses on investments?

Answer:

-First, deduct short-term losses against short-term gains

-Second, deduct long-term losses against long-term gains

-Third, net the two totals to determine whether there is a net gain or loss.

Question: What is the maximum amount of capital loss deductible against ordinary income in any one year?

Answer: $3,000

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