(1) the fair market value of the property at the date of the decedent’s death,
(2) in the case of an election under section 2032, its value at the applicable valuation date prescribed by such section,
(3) in the case of an election under section 2032A, its value determined under such section, or
(4) to the extent of the applicability of the exclusion described in , the basis in the hands of the decedent.
(1) Property acquired by bequest, devise, or inheritance, or by the decedent’s estate from the decedent;
(2) Property transferred by the decedent during his lifetime in trust to pay the income for life to or on the order or direction of the decedent, with the right reserved to the decedent at all times before his death to revoke the trust;
(3) In the case of decedents dying after
(4) Property passing without full and adequate consideration under a general power of appointment exercised by the decedent by will;
(5) In the case of decedents dying after
(6) In the case of decedents dying after
[(7) , (8) Repealed.
(9) In the case of decedents dying after
In the case of decedents dying after
(A) annuities described in section 72;
(B) property to which paragraph (5) would apply if the property had been acquired by bequest; and
(C) property described in any other paragraph of this subsection.
(10) Property includible in the gross estate of the decedent under section 2044 (relating to certain property for which marital deduction was previously allowed). In any such case, the last 3 sentences of paragraph (9) shall apply as if such property were described in the first sentence of paragraph (9).
This section shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691.
If stock owned by a decedent in a DISC or former DISC (as defined in ) acquires a new basis under subsection (a), such basis (determined before the application of this subsection) shall be reduced by the amount (if any) which would have been included in gross income under as a dividend if the decedent had lived and sold the stock at its fair market value on the estate tax valuation date. In computing the gain the decedent would have had if he had lived and sold the stock, his basis shall be determined without regard to the last sentence of (relating to reductions of basis of DISC stock). For purposes of this subsection, the estate tax valuation date is the date of the decedent’s death or, in the case of an election under section 2032, the applicable valuation date prescribed by that section.
(1) In general
In the case of a decedent dying after
(A) appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and
(B) such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor),
the basis of such property in the hands of such donor (or spouse) shall be the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent.
(2) Definitions
For purposes of paragraph (1)—
(A) Appreciated property
The term “appreciated property” means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis.
(B) Treatment of certain property sold by estate
In the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale.
(1) In general
The basis of any property to which subsection (a) applies shall not exceed—
(A) in the case of property the final value of which has been determined for purposes of the tax imposed by chapter 11 on the estate of such decedent, such value, and
(B) in the case of property not described in subparagraph (A) and with respect to which a statement has been furnished under identifying the value of such property, such value.
(2) Exception
Paragraph (1) shall only apply to any property whose inclusion in the decedent’s estate increased the liability for the tax imposed by chapter 11 (reduced by credits allowable against such tax) on such estate.
(3) Determination
For purposes of paragraph (1), the basis of property has been determined for purposes of the tax imposed by chapter 11 if—
(A) the value of such property is shown on a return under section 6018 and such value is not contested by the Secretary before the expiration of the time for assessing a tax under chapter 11,
(B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the executor of the estate, or
(C) the value is determined by a court or pursuant to a settlement agreement with the Secretary.
(4) Regulations
The Secretary may by regulations provide exceptions to the application of this subsection.