Chanetra inherits land from her aunt, Tameka. Tameka’s adjusted basis in the land was $150,000, and the fair market value at the date of her death was $200,000. Six months after Tameka’s death, the land is appraised at $225,000. Plans for a nearby shopping mall are announced, and the fair market value skyrockets to $400,000 when the land is transferred to Chanetra 9 months after her aunt’s death. The total value of all Tameka’s assets is $850,000 at date of death and $860,000 six months after death.
a. Can the executor elect the alternate valuation date? Explain.
b. What is Chanetra’s basis?