Looking for a Irs Form 8939 Templates? Download it for free!

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 8939

Allocation of Increase in Basis for Property Acquired From a Decedent

If there is an executor appointed,

acquired from the decedent (other than

Section references are to the Internal

qualified, and acting within the United

cash) that is one of the following.

Revenue Code unless otherwise noted.

States, the IRS generally will accept Form

1. Tangible property situated in the

8939 only if filed by that executor. For

General Instructions

United States.

detailed information on multiple and

2. Other property acquired from the

conflicting filings by executors who are

decedent by a United States person. A

More information. For more information

not appointed, qualified, and acting, see

United States person is any of the

about the latest developments on Form

Notice 2011-66, section I.A.

following.

8939 and its instructions, go to

a. A citizen or resident of the United

gov/form8939.

Effect of Election

States.

If the executor makes the Section 1022

Purpose of Form

b. A domestic partnership.

Election, special rules apply. These rules

c. A domestic corporation.

Form 8939 is an information return used

include the following.

d. Any estate other than a foreign

by the executor (defined below) of a

•

There is no estate tax.

estate. A foreign estate is an estate the

decedent who died in 2010:

•

The basis of property acquired from a

income of which, from sources outside

1. To make the Section 1022 Election

decedent generally is determined under

the United States that is not effectively

(see Section 1022 Election, later);

the modified carryover basis rules of

connected with the conduct of a trade or

2. To report information about

section 1022 and not under section 1014.

business within the United States, is not

property acquired from a decedent; and

Generally, the recipient’s basis is the

includible in gross income.

3. To allocate Basis Increase (see

lesser of the decedent’s adjusted basis or

e. Any trust if a court within the United

Basis Increase, later) to certain property

the fair market value (FMV) at the date of

States is able to exercise primary

acquired from a decedent.

the decedent’s death.

supervision over the administration of the

If the executor makes the Section

trust and one or more United States

For detailed information about the

1022 Election and follows the provisions

persons have the authority to control all

Section 1022 Election, see Notice

of section 4 of Revenue Procedure

substantial decisions of the trust.

2011-66, 2011-35 I.R.B. 184, available at

2011-41, and takes no return position

gov/pub/irs-irbs/irb11-35.pdf

and

Executor. The executor is the executor,

contrary to any provisions of section 4,

Notice 2011-76, 2011-40 I.R.B 479,

personal representative, or administrator

the IRS will not challenge the taxpayer’s

available at

gov/pub/irs-irbs/

of the decedent, or, if there is no executor

ability to rely on the provisions of section

irb11-40.pdf. For optional safe harbor

or administrator appointed, qualified, and

4 on either Form 8939 or any other return

guidance under section 1022, see

acting within the United States, then any

of tax.

Revenue Procedure 2011-41, 2011-35

person in actual or constructive

I.R.B. 188, available at

gov/pub/

Section 1022 Election

possession of any property of the

irs-irbs/irb11-35.pdf.

Irrevocable

decedent. For detailed information on

multiple or conflicting filings by executors

Section 1022 Election

A Section 1022 Election can not

who are not appointed, qualified, and

The executor of an estate of a decedent

be revoked after the due date.

acting, see Notice 2011-66, sections I.A.

who died in 2010 can elect to apply

See When to File, later.

and I.B.

CAUTION

modified carryover basis treatment to

Generally, once the executor has

Note. For the definition of property

property acquired from the decedent

made the Section 1022 Election, the

acquired from a decedent, see Property

under section 301(c) of the Tax Relief,

election is irrevocable. However, the

Acquired from a Decedent, later.

Unemployment Insurance

executor can revoke a prior Section 1022

Reauthorization, and Job Creation Act of

Election on a subsequent Form 8939 filed

The executor’s disclosure on Form

2010 (TRUIRJCA). If the election is

before the due date. See When to File,

8939 of property acquired from the

made, the estate will not be subject to

later. To revoke the Section 1022

decedent does not satisfy the

federal estate tax and does not need to

CAUTION

Election, the executor must check the box

requirements, if applicable, to disclose

file a Form 706 even if the value of the

at the top of Form 8939 designated for

foreign financial assets on Form 8938,

estate is $5,000,000 or more. As a result,

revocation. See Checkbox for Revoking

Statement of Specified Foreign Financial

section 1014 generally does not apply to

Section 1022 Election, later. For more

Assets, or to disclose a financial interest

determine the recipient’s basis in property

information, see Notice 2011-66.

in or signature authority over a foreign

acquired from the decedent. Instead,

financial account by filing Form TD F

section 1022 applies to determine the

Required Disclosure

90-22.1, Report of Foreign Bank and

recipient’s basis in most (but not all)

Financial Accounts.

property acquired from the decedent. This

Returns by Executors

election is referred to as the Section 1022

Returns by Trustees and

Election.

Generally, if the executor (defined later)

Beneficiaries

makes the Section 1022 Election, the

How to Make the Section 1022

executor must report all the information

If the executor is unable to make a

Election

required by Form 8939 and its

complete return as to any property

The Section 1022 Election is made by

instructions about all property acquired

acquired from the decedent, the executor

filing a timely Form 8939. Prior filings

from the decedent (other than cash).

must include a description of such

purporting to make the Section 1022

However, for the executor of a decedent

property and the name of every person

Election must be replaced with a timely

who is a nonresident not a citizen of the

holding a legal or beneficial interest in the

filed Form 8939. For information on when

United States, the executor must report

property. Upon notice from the IRS, such

to file Form 8939, see When to File, later.

certain information about the property

person must file Form 8939 as to such

Oct 20, 2011

Cat. No. 55218M

Instructions For Form 8939 - Allocation Of Increase In Basis For Property Acquired From A Decedent - 2010 Page 2

Related Articles

Related forms

Related Categories