Estate Planning

2010 Executors - Are You Ready to Allocate that Basis?

By Greg Herman-Giddens

Today I was alerted to the existence of a draft of the IRS from that will be required to be filed for estates of decedents dying in 2010 with estates in excess of $1.3 million.  IRS Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent.  The due date is April 15, 2011.

This form is necessitated by the Modified Carryover Basis rules that replaced the estate tax for 2010.  Each decedent's estate gets $1.3 million worth of basis to allocate to appreciated assets, with an additional $3 million for assets going to a surviving spouse.  IRC Section 1022.  The allocated basis will effectively eliminate capital gains tax liability for assets sold soon after death.

Full post as published by North Carolina Estate Planning Blog on November 02, 2010 (boomark / email).