The election by an estate of § 2032A (special use valuation as to real estate) or § 2032 (the alternate valuation date) will have no effect on the income tax basis of the property received by the heirs.

Question

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The election of § 2032A or § 2032 affects the estate tax valuation, which in turn affects the income tax basis of the property received by the heirs, as the basis is generally the fair market value at the date of death or the alternate valuation date.

The Election by an Estate of § 2032A (Special Use