Which of the following statements correctly reflects the rules regarding inherited property?
A)The beneficiary's basis can be greater than,equal to,or less than the decedent's basis.
B)The beneficiary's holding period includes the donor's holding period.
C)The alternate valuation date election only applies to those assets which have declined in value (i.e. ,does not cover assets that have increased in value).
D)Only a.and b.are correct.
E)a. ,b. ,and c.are correct.

Question

Quizplus · Accepted Answer

The beneficiary's basis in inherited property is generally the fair market value at the date of the decedent's death, which can be greater than, equal to, or less than the decedent's basis. The holding period for inherited property is automatically considered long-term, regardless of the decedent's holding period. The alternate valuation date election applies to all assets, not just those that have declined in value.

Which of the Following Statements Correctly Reflects the Rules Regarding