With the transfer, Newco Si steps into P's shoes for the carryover basis
on inherited assets may be lower than expected for some.
In a B reorganization, the acquirer's tax basis in the newly acquired Target stock is the surrendering transferor's basis in the stock (or carryover basis
under section 362(b)).
Instead, heirs' basis in assets they inherit is determined under the modified carryover basis
rules in IRC [section] 1022.
51) With the [section] 338 election, the acquiring corporation takes a cost basis in the target corporation's assets, (52) whereas if no election is made, the acquiring corporation takes a carryover basis
Under the 2010 act, executors of 2010 estates can elect out of the estate tax and back into carryover basis
As an alternative, estates may elect to be taxed as if the original 2010 rules applied (as if there were no estate tax and the modified carryover basis
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) repealed the federal estate tax and replaced it with a carryover basis
regime that is effective on the estates of those who die after Dec.
While the estate tax has been repealed, the onerous carryover basis
rules for taxing the gain on appreciated assets must be recognized.
As a result, there is currently no estate tax and a carryover basis
regime is in place.
9) Because all tax laws have to be revenue-neutral over 10 years, (10) Congress drafted EGTRRA so that the use of carryover basis
would apply for decedents dying in 2010 only.
estate tax and introduction of a modified carryover basis