This summer President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act into law so that the Highway Trust Fund’s spending authority can be reauthorized for another three months. The Act “makes a number of changes to the tax code, including provisions with respect to the income tax basis of property acquired from a decedent.” This article discusses the amendments that the Act makes to the Internal Revenue Code. The new legislation deals with the requirement to file Basis Statements with the IRS. These new rules are complex and it is a good idea to consult with an estate planning attorney to discuss how the new legal requirements apply to the client’s individual circumstances.
See Christopher Fidler and Kevin Robertson, New Basis Reporting Requirements (and Penalties) for Decedents’ Estates, Wealth Management, January 4, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
