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RD
RD , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 8784
Experience:  MBA, CPA
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A FLORIDA RESIDENT DIES IN THE YEAR 2010, SO NO FORM 706 HAS

Customer Question

A FLORIDA RESIDENT DIES IN THE YEAR 2010, SO NO FORM 706 HAS TO BE FILED AS THERE IS NO ESTATE TAX.

WHAT TAX FORM DUE YOU USE TO VALUE THE ESTATE ASSETS (FORMERLY IN sCHEDULE B OF FORM 706)
Submitted: 4 years ago.
Category: Finance
Expert:  RD replied 4 years ago.

RD :

What is the value of the estate? Are you trying to work out the step up basis for the heirs?

RD :

What assets are there in the estate?

JACUSTOMER-4kzszdlz- :

The cost basis of the investments is approximately $1,500,000.

JACUSTOMER-4kzszdlz- :

The step up basis at 08/08/2010 (date of death) is approximately $2,000,000

RD :

In your case, if you do not file the estate tax return than you will get a step up basis on assets upto $1.3 mn.

RD :

In order to get complete step up in basis, you need to opt for filing the estate tax return. Since the estate is under $5 mn there is not estate tax due but atleast you can get step up on all the assets.

RD :

You may want to read the article at the link below to get more details on this-

RD :

http://taxes.about.com/b/2011/04/01/irs-delays-guidance-regarding-the-estates-of-people-who-died-in-2010.htm

JACUSTOMER-4kzszdlz- :

GOOD AFTERNOON...

JACUSTOMER-4kzszdlz- :

I TRIED THE ABOVE IRS LINK AND GOOGLE REPLIED THAT THE LINK IS WRONG.

JACUSTOMER-4kzszdlz- :

COULD YOU PLEASE SEND ME THE LINK AGAIN.

JACUSTOMER-4kzszdlz- :

#2 IN ORDER TO GET THE STEP UP BASIS (ADDING THE $1.3 MILLION) DO I HAVE TO FILE AN ESTATE RETURN, FORM 706, OR CAN I ALLOCATE THIS STEP UP TO THE VARIOUS ASSETS AND USE THIS STEPPED UP BASIS WHEN THE STOCKS/BONDS ARE EVENTUALLY SOLD.

JACUSTOMER-4kzszdlz- :

THANKS

JACUSTOMER-4kzszdlz- :

OH ... WHEN I ATTEMPTED TO COPY YOUR ANSWER IT COPIED UP TO

JACUSTOMER-4kzszdlz- :

IN YOUR CASE, IF YOU DO NOT FILE THE ESTATE TAX RETURN THEN YOU WILL GET A STEPPED UP BASIS ON ASSETS UO TIO $1.3...

JACUSTOMER-4kzszdlz- :

HOW CAN I COPY YOUR FULL ANSWER???

RD :

Did you try to copy paste the link in the browser window? It should work. I just tried it.

RD :

Yes, in order to get step up basis for all the assets you need to file the estate tax return.

RD :

Else you can step up the basis of assets upto $1.3Mn and the balance assets carryover the decedent's cost basis.

RD :

In order to make these basis decisions, the administrator would typically have to file Form 8939 along with the Form 1040 for the deceased person.