The IRS has released final regulations on consistent-basis reporting for property acquired from a decedent.
These regulations ensure that a recipient's basis aligns with the property's value as determined for federal estate tax purposes.
The rules affect executors and others filing estate tax returns, particularly when the property's inclusion in the decedent's gross estate raises tax liability.
A 2015 law mandated this consistency, later modified in 2018. The IRS received 30 comments and held a public hearing, leading to changes to ease the burden on taxpayers.
The IRS removed the zero-basis rule for unreported property and adjusted the reporting requirements. Read more.