IRS Extends Deadline for Form 8939

Executors for estates of 2010 decedents may elect to pay estate taxes at the 2011 exemption level and tax rate while receiving a step up in basis for capital gains purposes or elect to pay no estate tax and receive no step up in basis. Form 8939 is required for heirs who choose the latter option.

The I.R.S. released a statement on Thursday extending the deadline for Form 8939.  This extension will help executors because determining the cost basis of different properties may require extensive research.  Form 8939 will not be due on April 18, but the I.R.S. has not yet set the date that it will be due.

See Margaret Collins, IRS Extends Form-Filing Deadline for Heirs to Complete 2010 Estate Taxes, Bloomberg, Mar. 31, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.