Basis Consistency Rules

Valuation professionals are frequently retained to perform appraisals of property for estate tax purposes.  IRC Section 1014 contains rules for property that is acquired from a decedent. The Highway Bill of 2015 amended section 1014 to provide that anyone who inherits property may not treat the property as having a basis higher than that reported for estate tax purposes.

In addition, it creates a new IRC section 6035 stating that executors that are required to file an estate tax return must furnish payee statements to any person acquiring an interest in property from the estate and must also provide information returns to the IRS. These statements identify the value of each interest in property acquired from the estate as reported on the estate tax return. The basis reporting provisions apply to property with respect to which an estate tax return is filed after the date of enactment, July 31, 2015.

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