1. Home
  2. Taxes General Forum
  3. Estate Tax Alternate Valuation Date

Estate Tax Alternate Valuation Date

Need help clarifiying the rules here. My understanding with the alternate valuation date was that it applied to everything in the estate. Now I have an appraiser telling me otherwise.

Due to the drop in the stock market, we would choose the alternate valuation date for all of the marketable securities. Now, there is also jewelry, that, due to the rise in the price of gold, would be worth more. Does the alternate valuation date apply to jewelry as well?

Also, there is a note receivable. Payments have been made continuously to the estate, so after 6 months, on the alternate valuation date, the note is worth less. (Not worthless, worth less). Is this note eligible to be valued on the alternate valuation date for the lower value?

Thank you for your time.

Reply to
Drew.Blaha
Loading thread data ...

From

formatting link
"If the election is made, the alternate valuation method applies to all property included in the gross estate and cannot be applied to only a portion of the property."

I knew this to be true, but I've 'misremembered' things every now and again, and rely on citations to confirm my failing memory. The IRS link is from 2004, so of course, if they've done a 180 and changed their collective minds on this, I'd appreciate a correction and new reference.

Joe

formatting link

Reply to
joetaxpayer

The appraiser is wrong.

The alternative valuation date applies to everything in the estate. The alternative valuation date can be elected by the executor if two conditions are met. The total value of the estate must be lower on the alternative date AND the estate tax liablity must be lower when the alternative valuation date is used. Going from zero liablity to zero liablity is not lower.

The alternative valuation date for assets disposed off before 6 months have passed is the day they are disposed of.

Reply to
Bill Brown

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.