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Amending estate tax return?

My wife and her siblings inherited a piece of real estate which was apprased at $2000000 and some common stock when her mother passed away in 2003. Basically, the proceeds from the sale of the stock paid the federal estate tax. The appraosal of the real estate was made, mostly, due to one contingent offer, which then fell through. Since that time, there has been a series of such offers in diminishing amounts. It is now on the market for $1000000. There is no reason to believe that the "real" value of the real estate has diminished during this period. Is it possible to file and amended estate tax return and get the excess tax back? How long do they have to do it? Thanks.

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Reply to
Bob B
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If the appraisal was a "true" appraisal, you would have a hard time convincing the IRS. But if what the personal representative did was ask a Realtor "What is this worth?" and got an off-the-cuff answer of $2,000,000, I'd suggest you invest in a certified appraisal. It's possible, of course, that she died at the peak of the real estate market in your area. Though in that case it would have been worthwhile to elect alternate valuation six months after her date of death.

-- Tom Healy, CPA Boulder, CO Web:

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Reply to
Thomas Healy

The following is from memory without actually looking to see if the rules changed: Assuming a Form 706 was timely filed, you can elect to use the alternate valuation date on the last timely filed 706. The final date to amend would be the due date of the 706 including any extensions. The normal due date is 9 months after the date of death. If no extensions had been granted, then the last Form 706 filed before 9 months elapsed could include the election to use the alternate date.

-- Alan

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Reply to
A.G. Kalman

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