Discussion:Basis Election for Deaths in 2010

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Discussion Forum Index --> Basic Tax Questions --> Basis Election for Deaths in 2010


Discussion Forum Index --> Tax Questions --> Basis Election for Deaths in 2010

Davidh0911 (talk|edits) said:

20 January 2011
Does anyone know what the mechanics are for making the step-up v/ carryover basis election under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010? Which one is the default and which one has to be affirmatively elected. How is the election made? By filing an estate tac return? On the decedent's final 1040?

I spent a little time searching the internet for an answer and could not quickly find one. I know it's out there but I thought someone here might know and could give me a quick answer.

Davidh0911 (talk|edits) said:

20 January 2011
(sorry for the typos above)

I have several smaller estates from 2010 and I want to make sure that we do what needs to be done to make sure the heirs get a step-up in basis in the assets they inherited.

DaveFogel (talk|edits) said:

20 January 2011
Fair market value of the property on date of death is the “default.” Carryover basis was repealed and was made an election. See section 301 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853).

Dennis (talk|edits) said:

20 January 2011
Note for "small estates." The section that allows spousal portability for the unused portion of the $5 million unified credit requires these estates to file a 706...♫

Kevinh5 (talk|edits) said:

27 September 2011
(isn't portability for 2011 and 2012, but NOT 2010?)

R2 (talk|edits) said:

28 September 2011
Kevin, I believe that you are correct. Sec 2010(c)(4).

Dennis (talk|edits) said:

28 September 2011
Back in January there was talk that there would be a retroactive change. We were filing protectively.

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