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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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Deceased died 05/06/2010. There is some question between me

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Deceased died 05/06/2010. There is some question between me and the P/R whether the estate assets are valued at death date or if the assets should be valued at decedant's cost.

LEV :

Hi and welcome to Just Answer!

LEV :

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.

Customer:

Does stepped-up basis require a formal election? The P/R needs some reassurance in addition to my opinion.

LEV :

That law was in effect only for 2010 and repealed starting 2011 as estate taxes are back.
I am looking for references...

LEV :

IRS Form 8939 is Allocation of Increase in Basis for Property Acquired From a Decedent - http://www.irs.gov/pub/irs-pdf/f8939.pdf
See also this notice - http://www.irs.gov/pub/irs-drop/n-11-66.pdf

LEV :

Use from 8939 for the formal election.

Customer:

Thank you. You have provided me the information I need to satisfy the P/R.

LEV :

You are welcome
Here are instructions for the form - http://www.irs.gov/pub/irs-pdf/i8939.pdf

LEV :

Here are instructions for the form http://www.irs.gov/pub/irs-pdf/i8939.pdf

LEV :

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