Does the executor of the estate have to do anything to use theprimary valuation date of inherited property?
Does the executor of the estate have to do anything to use theprimary valuation date of inherited property?
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Ludwig died on April 5, 2016. As part of his will, he leavesland that he paid $6,000 for on December 31, 2015, to his son Don.On April 5, 2016, the land is worth $11,000. However, due to localreal estate conditions, the land declines in value. On July 28 itis worth only $10,000; it declines further to $9,000 on October 5and plunges to $7,000 on December 18.
I. | In the absence of any special elections, Don's basis in the landis $11,000. |
II. | If the executor elects the alternate valuation date anddistributes the land to Don on July 28, Don's basis in the landwill be $9,000. |
III. | If the executor elects the alternate valuation date anddistributes the land to Don on December 18, Don's basis will be$7,000. |
IV. | In the absence of any special elections, if the executordistributes the land to Don on October 5, Don's basis in the landwill be $9,000. |
A.) Only I is correct. | ||
B.) I and II are correct. | ||
C.) I, II and IV are correct. | ||
D.) I and IV are correct. | ||
E.) All the statements are correct. |