Discussion Question $27-7($LO$.3)$

Under $2032,$ the alternate valuation date for asset transfers at death, has the features listed below.

Complete the associated statement for each feature listed.

a$.$ The justification for the alternate valuation date election.

b$.$ The main heir prefers the date of death value.

c$.$ An estate asset is sold seven months after the decedent's death.

d$.$ Effect of the election on the income tax basis in the property received by the heir.

The alternate valuation date was designed as a relief provision to ease the economic hardship that could result when estate assets decline in value.

The executor makes the $2032$ election and it is irrevocable $>.$

This affect the alternate valuation date amount because the disposition occurs the alternative valuation date.

The value of the property generally determines the amount that is subject to the gift tax or the estate tax. If an alternate valuation election is made, that valuation amount income tax basis of property subject to the election.