Estimating the value of an estate

If you're talking about estate tax purposes, IRA's are inncluded in the taxable estate. In addition life insurance on the deceased is also included if he has any "incidents or ownership," which he probablly has.

It doesn't get re-set because there's no estate tax to counter- balance the loss of income tax. I'm not sure but I'd guess it would be the donor's basis. I have no idea what you mean by "average basis."

Do you mean you pay for a particular asset over a term of years? Or you buy different things over the years?

If you buy different things, each one has its own acquisition date

- when it was acquired.

If you mean something like a house that you pay for over many years, the acquisition date is when you first acquire it - that's what acquisition means - When you contract to buy it.

Decedent's basis + any transfer tax (which is ZERO for estate tax in 2010) actually paid.

A transfer tax could also be the gift tax on Form 709. The gift tax hasn't gone away.

There is no such thing as "average basis."

For items actually inherited, there is no acquisition date needed. Write "Inherited" instead. All capital transactions are long-term regardless of the successor's holding period.

What about for purposes of depreciation - if there's no acquisition date, how do you calculate that?

Inherited property does not carry any prior depreciation. If rental property is inherited, reset the clock and any depreciation expense on date of death.

According to the date the successor places it in service.