Have a Tax Question? Ask a Tax Expert
Hi and welcome to Just Answer!
the estate assets are valued at decedant's cost.However - you may use stepped up basis - up to FMV of assets at death date - with limitation that the total increase of the basis fro all assets in the estate may not be more than $1,300,000.
Does stepped-up basis require a formal election? The P/R needs some reassurance in addition to my opinion.
That law was in effect only for 2010 and repealed starting 2011 as estate taxes are back.I am looking for references...
IRS Form 8939 is Allocation of Increase in Basis for Property Acquired From a Decedent - http://www.irs.gov/pub/irs-pdf/f8939.pdfSee also this notice - http://www.irs.gov/pub/irs-drop/n-11-66.pdf
Use from 8939 for the formal election.
Thank you. You have provided me the information I need to satisfy the P/R.
You are welcome Here are instructions for the form - http://www.irs.gov/pub/irs-pdf/i8939.pdf
Here are instructions for the form http://www.irs.gov/pub/irs-pdf/i8939.pdf
Please be sure to accept the answer. Experts are credited only if answers are accepted.