bernie10
Level 3
02-15-2025
10:50 AM
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Taxpayer has inherited property from a friend's estate and wants to take advantage of the step up in basis. I need to know if this is available because she is not related to the estate.
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Level 15
02-15-2025
10:56 AM
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Don't have to be related. this is what the IRS says.
The basis of property inherited from a decedent is generally one of the following:
- 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 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. See the Instructions for Form 706.
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Level 15
02-15-2025
10:56 AM
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Don't have to be related. this is what the IRS says.
The basis of property inherited from a decedent is generally one of the following:
- 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 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. See the Instructions for Form 706.