FMV of property

[RLymanC]

This seems like a no brainer, hope it's not, if yes, what does that say for me.MMMM

Owner dies on 01/15/2000. Benificiary inherited property at time of death and property was then placed in trust for four years (until reaching the age of 28.)

Benificiary sells property the next year. At what point in time is FMV calculated.

It has to be at time of death I would think,,,I need some back up on this.

[jainen]

Mmmm

Yep, no brainer. MMMM.

[Bird Legs]

No Brainer Jainen

That is correct. Since all the brains have been used up on another thread, there are no
brains left.
Agree with Jainen. FMV at date of death.

[taxmandan]

FMV of property

This seems like a no brainer, hope it's not, if yes, what does that say for me.MMMM

Owner dies on 01/15/2000. Benificiary inherited property at time of death and property was then placed in trust for four years (until reaching the age of 28.)

Benificiary sells property the next year. At what point in time is FMV calculated.

It has to be at time of death I would think,,,I need some back up on this.

You need FMV for two dates: the date of death to determine basis and sales date for determining captial gain/loss on the sale.

[Gary]

Are there not two possible dates?

1) The fair market value (FMV) of the property on the date of the decedent's death.

(2) The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation.

Gary

[Bird Legs]

Alternate Valuation Date

You do have your choice. Was an alternate valuation date used?

[RLymanC]

Fmv

Thank you Gary & Bird Legs, I'll check on an alternate date. Could be rather significate over a 4 year period in a hot realestate market.

[Bird Legs]

Alternate Value Date

See page H-16 in the 2004 Business Quickfinder.-VALUATION.
"If the personal representative elects alternate valuation, the values reported on Form 706 are as follows:
1: For assets distributed, sold, exchanged or otherwise disposed of within six months after
death, value on the date of disposition.
The term "distributed" refers only to transfers of assets from the probate estate or from a trust included in the gross estate under Sect. 2035 through 2038. The transfer of title from the decedent to a surviving joint tenant or beneficiary is not a distribution or disposition
of property.
2: for assets not disposed of within six months after death, value on the date six months
after death.
3: Interests affected by mere lapse of time, value as of the time of death (remainders, reversions, patents, estates for the life of persons other than the decedent).

Page H-15-The basis of property acquired from a decedent is the value of the
property from the decedent's Form 706 estate tax return. If no estate tax return is
required for a decedent, basis is the FMV on the date of death.