IRS Guidance on 2010 Decedents’ Estates Filings
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The IRS recently issued guidance on the treatment of basis for certain estates of persons who died in 2010. This will assist executors who decide to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due November 15, 2011.
The IRS plans to release Form 8939 and instructions early this fall.
Under EGTRRA 2001, the estate tax was repealed for persons who died in 2010. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 then reinstated the estate tax for 2010 decedents. Executors of estates of decedents who died in 2010 can now opt out of the estate tax, and instead elect the repealed carry-over basis provisions of the 2001 Act.
Notice 2011-66 provides guidance for executors of estates of decedents who died in 2010 regarding the time and manner of choosing to opt out of the estate tax have the carryover basis rules apply.
Revenue Procedure 2011-41 provides safe harbor guidance regarding property acquired from estates of decedents who died in 2010.
