Forbes.com features an article discussing electing out of the estate tax for decedents that died in 2010. Although the estates of taxpayers who died in 2010 may elect out of the estate tax, the recipients of the assets will lose the stepped-up basis in those assets that they would have received under section 1014. Instead, the recipients of the assets will take the assets with a carryover basis under section 1022. Form 8939 is the basis allocation form that must be filed by executors. The final version of Form 8939 should be available in the early fall and must be filed by Nov. 15, 2011.
See Robert W. Wood, "Beware New Estate Tax Election," Forbes.com (Aug. 19, 2011).
Posted by Adam Bair, Associate Editor, Wealth Strategies Journal
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