"Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:
- quote -

The key here is that using the election must result in lower
estate tax, not just that the value of the estate is lower.
If no return is being filed to begin with due to not meeting
the taxable threshold, the election cannot be made.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"Martha Matthews, EA" <Ymtsmv[at]earthlink.net> wrote:
- quote -

If an Estate Tax Return does NOT need to be filed, there is
NO federal tax to be paid (or reduced). The alternate
valuation date does not apply in such a situation.

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Arthur L. Rubin wrote:
- quote -

My recollection is that the election must be taken on the
timely-filed 706 or it is lost.

Stu

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"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

To fine tune the last response just a bit - the basis is
"ADJUSTED" to the FMV on the date used for valuation.
Frequently, we use the phrase "step up" but that is not
really correct. The basis is "adjusted" and that adjustment
could be up or down depending on the market and the
decedent's basis. When the market "burped" recently, we had
a client who inherited some investments that had the basis
adjusted up, but there were also some purchased that had to
have their basis adjusted down.

Gene E. Utterback, EA

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smithff33[at]aol.com (Herb Smith) wrote in

- quote -


- quote -

The alternate date of death value can be used only if it
reduces tax.

Martha Matthews, EA

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Herb Smith wrote:

- quote -

I would like to request a clarification. Is that the case
ONLY if an estate return needs to be filed (and the value of
the estate is less at the 6 months mark than at the time of
death), or only if an estate return IS filed?

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"John" <John[at]john.com> wrote in

- quote -

Stock is valued at FMV on the date of death or the alternate
date of death value if it will reduce federal tax. Valuation
is done by taking the mean of the high and low for the day
(if the market is not open then the mean of the day before
death and the day after death when the market was open).
Interest accrued but not paid at the date of death and
dividends which are declared after the "x" date or declared
before the date of death but paid after must also be
included.

Brokers rarely give the correct value and the IRS does
review by using a software program which you can use as
well.

Martha Matthews, EA

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"msmap" <msmap[at]houston.rr.com> wrote:
- quote -

Not quite correct. The basis is "stepped up" to the FMV of
the stock on the date of death (with some adjustments if
that happens to be a weekend, holiday, or other day that the
market is closed). IF the estate is large enough to require
the filing of Form 706 (Estate Tax Return), the executor
might choose to value the assets on the date 6 months later
(Alternate Valuation Date).

This latter option is only given to the EXECUTOR, and only
if an estate return needs to be filed. All other estates use
date of death.

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John[at]john.com (John) posted:

- quote -

Stock is valued at the market price on the date of death.
That becomes the "basis" for the inheritor, when eventually
selling the stock.

Bill

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"John" <John[at]john.com> wrote:

- quote -

The basis for equities is the value of the stock on the day
of death or 9 months later.

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For estate purposes, you are to have a formal probate or
trust inventory as of the date of death. So all assets are
valued as of the date of death or an alternate valuation
period.

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"John" <John[at]john.com> wrote:

- quote -

You're incorrect. It's date of death value.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"John" <John[at]john.com> wrote:

- quote -

See Pub 559 for some basics. On death, all assets of the
decedent are "stepped up" to FMV on the date of death (or
possibly six months later if there is a taxable estate and
the executor chooses the alternate valuation date). The
decedent's basis no longer applies, and the holding period
automatically becomes "long term", regardless of how long
the decedent held the asset.

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- quote -

It is valued at market value on the date of death (at least
until 2010).

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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- quote -

Under current law, there is a step up in basis which
generally is the FMV on the date of the decedents passing.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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For estate purposes, is stock valued at the deceased's
basis, or at market value?

I am pretty sure it is valued at the gifter's basis on a
give, but maybe an estate is different?

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