Justin P. Ransome, CPA, J.D. and Frances Schafer, J.D. recently published an article in the Journal or Accountancy titled "Estate Tax or Carryover Basis?" The article discusses how the Tax Relief Act repealed the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) provisions that had repealed the estate tax in 2010. It set the top estate tax rate at 35% and provided for an exemption amount of $5 million. The effect of these provisions is to retroactively reinstate the estate tax to apply to decedents dying in 2010; however, the Act gives the estate of a person dying in 2010 an election to apply the law as if the Act had not repealed the EGTRRA provisions. The article provides advice to practitioners who have clients that died in 2010 whether to make the election provided under the Tax Relief Act.
Posted by William Alan Nelson II, Associate Editor, Wealth Strategies Journal
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