Basis Consistency and Basis Reporting Rules

August 7, 2015

I have attached H.R. 114-3236(ih) which provides for the consistency of reporting of cost bases in estates where the value of the property increases the liability for federal estate tax. It also requires the executor of an estate required to file a return file with the Secretary and send to the beneficiaries "a statement identifying the value of each interest in such property as reported on such return and such other information . . .as the Secretary shall prescribe."

This is effective immediately for all federal estate tax returns filed after the effective date of the Act (August 1, 2015) and is required the earlier of 30 days after the due date or the date the return is filed.

One might suggest just sending a copy of the 706 to the beneficiaries and making a suitable notation on the 706 that this is the statement required until we get a better idea about what is required.

Note the reporting requirement applies to all estates where the 706 is required, so one that is over the limit but pays no tax has to do this reporting but one that does not have to file, but is doing so to report DSUE would not be required to do so.

There are lots of questions--I don't have the answers as of yet, but I attach the Bill for your perusal.

 Also note in that same bill there are changes to the statute of limitations and also in filing dates and extensions including a change in the filing of Form 114 (foreign Bank Account Reporting) to April 15, with a 6 month extension available. That is a good change.

Download H.R. 114-3236(ih)

Bob Wolf, Moderator, P & T Hot Tip Email List

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