Tax Planning

The Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010. The executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply.

Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. However, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate tax for persons who died in 2010. This recent law allows executors of the estates of decedents who died in 2010 to opt out of the estate tax, and instead elect to be governed by the repealed carry-over basis provisions of the 2001 Act. This choice is to be made by filing Form 8939.

However, you need to hire a CPA to do the numbers for you, to see which is a better option. 

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