IRS Draft Form for Modified Carryover Basis Missing Tax Law Changes

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

IRS's draft Form 8939, for determining basis for property acquired from a decedent, does not reflect estate tax changes made in tax cut legislation signed by the president, IRS spokesman Eric Smith tells BNA. The draft form was released for public comment Dec. 17. However, it did not include changes to the estate tax law that will allow executors to choose between modified carryover basis and the estate tax for decedents in 2010. IRS is in the process of determining the impact of that legislation, Smith says, but in the meantime, practitioners should continue to comment on the Dec. 17 draft.