Western Iowa | wheat fallow - 4/9/2013 14:55
Sorry to hear of your situation. You should talk with a lawyer or CPA about tax implications. I think if you sell your trucks, etc. while you are alive if they are depreciated out you could end up paying income tax on the sales proceeds. If you leave them to your wife they will pick up a new basis in your estate (which I assume is below the amount where Federal Estate Tax will apply) and when your wife sells them the only income tax would be on any gain between the basis and the selling price. If the sale determined the basis the gain would be zero and no income or capital gains tax would be due. The same idea applies to property. Again, talk with a tax professional.
I am also sorry to hear of your situation. Others here have been giving you excellent advice on the personal and eternal aspects. I hope you are a Christian. I also hope you can beat this, or that a second opinion reveals a better prognosis. But most of the the responses are giving you bad advice on the financial issues.
I have some recent experience. And, I agree with "wheat fallow". He is correct about the tax issues. If you liquidate any Real Estate or depreciable business items before you die, it is likely that would create a significant income tax bill. If your heirs inherit the property and then they sell it, then the gains are NOT considered income and is not taxed as income. The value of the property is subject to inheritance tax, and the first $5 million+ would be exempt. (I do not specifically know Missouri's laws on this).
Seek an attorney and/or CPA's advice. Do not sell business equipment or Real Estate that has appreciated in value after you purchased it, until after you seek the professional advice. Best wishes. I will include you in my prayers.
Edited by tim42163 4/9/2013 20:03
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im 56 and have stage four lung cancer...need advice
