Question about the new 2024 TD 9991 - Consistent Basis Reporting
Dear @Carl or others,
I inherited a single family rental property in the year 2000. As executor, I filed an Estate Tax Return which listed the rental property at $95,000 – the county tax valuation for that year.
The property was sold in 2024, so I’m trying to figure out the cost basis. Would it be the $95,000 tax-value listed on the Estate Tax Return? Or can I use the FMV of approx $120,000?
I came up with the FMV $120,000 figure by adding about 30% to the tax value, and by looking back at State Farm’s insurance coverage in year 2000.
My head spins when I try to read the tax code:
Pub 551 says the basis of property inherited from a decedent is generally the FMV of the property at the date of the individual's death ($120,000 in this case)
But Sec. 1014(f) states a recipient's basis in property acquired from a decedent must be consistent with the value of the property as finally determined for federal estate tax purposes ($95,000 in this case)
Confusingly, the recent TD 9991 Consistent Basis Reporting regulation seems to say that the Consistent Basis Requirement does not apply to property on an Estate Tax Return filed before July 31, 2015 – meaning I could use the higher $120,000 FMV number as the cost basis?
Any help is appreciated.
