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A while back I read somewhere that a federal tax law passed

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in 2002 ? allowed the...
A while back I read somewhere that a federal tax law passed in 2002 ? allowed the TAX BASIS of a business property to be increased to the FAIR MARKET VALUE if the property was owned in that year. Can you confirm that and if true how would one attempt to establish a basis for a wooded real estate property that had been inherited some 8 years earlier??
Submitted: 6 years ago.Category: Tax
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5/2/2011
Tax Professional: MequonCPA, Certified Public Accountant (CPA) replied 6 years ago
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Hi and welcome to JustAnswer:

 

There is no adjustment to basis strictly based on a date in time. Your basis in the real estate is its fair market value on decedent's date of death. See page 9 of IRS Publication 551 "Inherited Property"

 

http://www.irs.gov/pub/irs-pdf/p551.pdf

 

MequonCPA
MequonCPA, Certified Public Accountant (CPA)
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