However, the executor of a decedent who died in 2010 may elect out of the Federal estate tax rules for 2010 and use the modified carryover of basis rules. Again, check What's New - Estate and Gift Tax for updates on final rules being promulgated to implement the new law.įor estates of decedents who died in 2010, basis is generally determined as described above. Under the new law passed by Congress in 2015, an accuracy-related penalty may apply if an individual reporting the sale of certain inherited property uses a basis in excess of that property’s final value for Federal estate tax purposes.
INTERAC E TRANSFER FROM CANADA REVENUE AGENCY SYSTEM HOW TO
For information on how to report the sale on Schedule D, see Publication 550, Investment Income and Expenses. If you sell the property for more than your basis, you have a taxable gain. Report the sale on Schedule D (Form 1040), Capital Gains and Losses and on Form 8949, Sales and Other Dispositions of Capital Assets: If you or your spouse gave the property to the decedent within one year before the decedent's death, see Publication 551, Basis of Assets. Check What's New - Estate and Gift Tax for updates on final rules being promulgated to implement the new law. Also, note that in 2015, Congress passed a new law that, in certain circumstances, requires the recipient’s basis in certain inherited property to be consistent with the value of the property as finally determined for Federal estate tax purposes. 
See the Instructions for Form 706.įor information on the FMV of inherited property on the date of the decedent’s death, contact the executor of the decedent’s estate.
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return ( Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)). The basis of property inherited from a decedent is generally one of the following: To determine if the sale of inherited property is taxable, you must first determine your basis in the property.
0 kommentar(er)
