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the decedent had been sold at FMV

The decedent’s estate.

Specific Instructions

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immediately before the decedent’s death.

The decedent’s surviving spouse, if

In the case of a decedent who was a

any.

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nonresident not a citizen of the United

Any QTIP or other trust.

Checkbox for Amended

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States, enter zero. For more information,

Each other person who acquires

Return

see Unrealized Losses, earlier.

property from the decedent by bequest,

devise, inheritance, or otherwise by

If this is an amended or supplemental

Line 11. Capital Loss

reason of the death of the decedent to the

return, check the box for an amended

extent that such property passed without

Carryforward

return. If the amended return is filed

consideration.

under Regulations section 301.9100-2,

Enter the aggregate amount of any capital

also write “FILED PURSUANT TO

loss carryforward under section 1212(b)

Each property or interest in property

SECTION 301.9100-2” at the top of the

that would (but for the decedent’s death)

required to be disclosed on Form 8939

return.

have been carried from the decedent’s

must be reported on a Schedule A.

last tax year to a later tax year of the

Checkbox for Revoking

Multiple and partial interests in

decedent. In the case of a decedent who

Section 1022 Election

property. For an undivided or fractional

was a nonresident not a citizen of the

interest in property held by and received

United States, enter zero. For more

If this Form 8939 revokes a previous

from the decedent by the recipient listed

information, see Carryforwards, earlier.

Section 1022 Election made on an earlier

on line 2a, describe only the undivided or

Form 8939, check the box for revocation

Line 12. Net Operating

fractional interest. For a life estate or

of an election.

remainder interest in property, where the

Loss Carryforward

partial interest received by the recipient

Decedent’s Name and

listed on line 2a was created by the

Enter the aggregate amount of any NOL

Address

bequest or devise made by the decedent,

carryover under section 172 that would

however, Basis Increase may be

(but for the decedent’s death) have been

Enter the decedent’s name and address.

allocated only to the entire property

carried from the decedent’s last tax year

owned by the decedent. Therefore,

to a later tax year of the decedent. In the

Line 2. Decedent’s Social

assuming the decedent’s adjusted basis

case of a decedent who was a

Security Number

in the entire property is less than the FMV

nonresident not a citizen of the United

of the property at the date of death,

States, enter zero. For more information,

If the decedent was a nonresident or

describe the undivided interest in property

see Carryforwards, earlier.

resident alien and did not have and was

(including the decedent’s adjusted basis,

not eligible to get a social security number

You can use Schedule A of Form

the property’s FMV at the date of death,

(SSN), the executor must apply for an

1045, Application for Tentative Refund to

and the amount of Basis Increase

individual taxpayer identification number

figure the amount, if any, of the

allocated by the executor) on an

(ITIN) on behalf of the decedent. For

decedent’s NOL.

attachment to Line 4 or in column (a) of

details on how to do so, see Form W-7

Line 4. Also include in this description the

Line 12a.

and its instructions. It takes 6 to 10 weeks

applicable section 7520 rate, the life

to get an ITIN. If the decedent already

Add lines 10, 11, and 12. This line 12a is

tenant’s age, and the recipient’s actuarial

had an ITIN, enter it wherever the

the amount of the Carryovers/Unrealized

factor at the decedent’s date of death.

decedent’s SSN is requested on Form

Losses Increase.

Compute the recipient’s portion of

8939.

adjusted basis, FMV, and basis increase

Line 12b.

Note. An ITIN is for tax use only. It does

allocation (allocated on an actuarial basis

not entitle the holder to social security

between the income and the remainder

For nonresident decedents who were not

benefits or change the holder’s

interests), and list the recipient’s share of

United States citizens, enter $60,000. For

employment or immigration under U.S.

each in columns (b) through (f) on line 4.

all others, enter $1,300,000.

law.

Note. For property transferred in trust

Line 12c. General Basis

Line 6a. Executor’s Name

with an income and remainder interest,

Increase

the trust is considered the sole recipient

If there is more than one executor, enter

of the property.

the name of the executor filing this Form

Add lines 12a and 12b. This line 12c is

8939. List the other executors’ names,

the total General Basis Increase that is

Example. Donald died on October

addresses, and SSNs (if applicable and if

available to allocate to property acquired

10, 2010, owning real property. Donald

known) on an attached sheet.

from and owned by the decedent.

originally acquired the property on

December 10, 2007. As of Donald’s date

Line 6c. Executor’s Social

Line 13.

of death, the property has an FMV of

Security Number

Enter the sum of the totals from all

$967,000 and an adjusted basis of

Schedules A, line 4B, column (e)(i) on this

$425,000. Donald devised the property to

Only individual executors should

line. This total may not exceed the

Larry for life, with remainder to Rachel. At

complete this line. If there is more than

amount listed on line 12c.

the time of Donald’s death, Larry is 48

one individual executor, all should list

years old. The section 7520 rate for

their SSNs on an attached sheet.

Line 14.

October 2010 is 2.0 percent. Donald’s

Line 9. Names of

executor, Edward, makes the Section

Enter the total from each Schedule A, line

1022 Election by timely filing Form 8939.

4B, column (e)(ii) on this line. This total

Recipients

Edward allocates $542,000 of General

may not exceed $3,000,000.

Basis Increase to the property. See

Enter the name of each recipient, other

Schedule A

Attachment to Larry’s Schedule A, on the

than the decedent’s surviving spouse, of

next page and Attachment to Rachel’s

property acquired from the decedent.

Complete a separate Schedule

Schedule A, later.

A — Disclosure of Property Acquired From

Line 10. Built-in Loss

the Decedent (and Recipient Statement)

Line 1a—Executor’s Name

Enter the aggregate amount of any losses

for each recipient of property acquired

that would have been allowable under

from the decedent, including each of the

Enter the name of the executor shown on

section 165 if the property acquired from

following.

line 6a of Form 8939.

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Instructions For Form 8939 - Allocation Of Increase In Basis For Property Acquired From A Decedent - 2010 Page 7

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