The election of § 2032 (alternate valuation date) for estate tax purposes:

Question

Quizplus · Accepted Answer

When § 2032 alternate valuation date is elected, assets in the decedent's estate may receive a higher income tax basis than their date of death value. This is because the alternate valuation date determines the value of assets in the estate for estate tax purposes, but not for income tax purposes. Therefore, if the assets appreciate in value between the date of death and the alternate valuation date, the heirs may receive a higher income tax basis for those assets than their date of death value. Choices A, B, and D are incorrect because they do not accurately describe the effects of the § 2032 election.

The Election of § 2032 (Alternate Valuation Date) for Estate