Question

Daven inherited property from a parent. The property had an adjusted basis to the parent of $1,600,000. It was valued at $2,000,000 at the date of death and valued at $1,800,000 six months after the date of death. The executor elected the alternative valuation date. What is Daven's basis in the property

Answer 1

$1,800,000

Step-by-step explanation:

As per the section of 1014(a) (2) pf IRS the basis of the inherited property is normally the fair market value at the time of dealth.

In the case when there is an alternative valuation date i.e. chosen so here the basis should be at the fair market value because the valuation is less than the value at death

So $1,800,000 should be considered