Full question:
What form do we need to report inheritance of property on our income tax return?
- Category: Taxes
- Date:
- State: Illinois
Answer:
The answer will depend on all the facts involved, such as whether you are the personal representative of the estate. Please see the information from the IRS applicable to inherited property:
http://www.irs.gov/publications/p559/ar02.html#en_US_publink100099775
http://www.irs.gov/publications/p559/ar02.html#en_US_publink100099643
http://www.irs.gov/publications/p559/ar02.html#en_US_publink100099672
The basis of any property, real or personal, acquired from a decedent is usually its FMV on the date of the decedent’s death. If the farm is a joint holding, the surviving spouse is entitled to a stepped-up basis on ½ of such property. If a federal tax return is required and if the property must be included in the decedent’s gross estate, the basis is the FMV at the date of death, or, if elected, the alternate valuation date. Under this method, property is valued at the date six months after the decedent’s death, if not sold or otherwise disposed (See IRC § 2032 for other information on alternate valuation.).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
