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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15328
Experience:  15years with H & R Block. Divisional leader, Instructor
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For an estate that wanted to take advantage of possible

Customer Question

For an estate that wanted to take advantage of possible upcoming estate tax repeal, is there a correct way to elect the alternative valuation date for that?
Submitted: 8 months ago.
Category: Tax
Expert:  Robin D. replied 8 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 8 months ago.

The personal representative makes the election by indicating so on IRS Form 706 at line 1, page 2, part 3. The estate must be large enough that it will owe estate taxes, and using the alternate valuation date must reduce that tax liability for the estate to qualify.

If the alternate valuation date values are used, all assets must be revalued, not just those that have gone down in value.

Customer: replied 8 months ago.
Right, but can you elect it somehow if you just want to avoid the current estate tax and use the one in six months (should it change)? Or does it have to be only market related that the value of the estate goes down? For instance if it was all cash, could you elect it?
Expert:  Robin D. replied 8 months ago.

If it was all cash then no.

The election must be used to reduce the tax liability for the the estate. There has to be an estate reason for the valuation.

Expert:  Robin D. replied 8 months ago.

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