The IRS code has been amended adding new reporting requirements concerning the basis in inherited property. Subsection 1014(f) caps the basis a beneficiary may claim on inherited property at the basis reported by the estate on the final tax return. Section 6035 will require an estate to provide a valuation statement on each piece of inherited property to a beneficiary within the earlier of 30 days of the estate tax return being due or within 30 days of the being return being filed. This valuation is vital because §6662 imposes a penalty if gain is understated by the beneficiary. The new requirements went into effect on July 31, 2015, with new forms and regulations expected to be issued in the near future.
See Michelle L. Vesole, New Law Establishes Additional Reporting Requirement For Estates, Bloomberg BNA, August 4, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
