[1] Each estate will be allowed to a stepped-up basis up to a maximum $1.3 million, meaning that the cost basis of all property beyond $1.3 million will carry over with the original cost basis. The surviving spouse will qualify for an additional $3 million. [2] I.R.S. § 6018 (a) and (b) [3] See Section 301 of TRUIRJCA [4] The will or trust instrument may direct the fiduciary to pay all of the taxes due including inheritance tax. [5] IRC § 2505(a)(1) [6] IRC §2512(b), Reg. § 25.2512.8 [7] IRC § 2056 & 2523(a). [8] IRC § 170(f) [9][9] IRC §2055 & 2522 [10] See definition under IRC §(d)(1) [11] See definition under IRC § 664(d)(2) [12] See definition under IRC §(c)(5) [13] See IRC § (f)(2), 2055(e)(2), 2522(c)(2) [14] See chart A on page 6 of the 2007 IRS instructions for Form 1040. [15] See I.R.C. Section 2652(a)(3). [16] See I.R.C. § 2602. [17] See I.R.S. § 264(1a). [18] 1099 Miscellaneous. [19] See Va. Code Section 55-277.4. [20] See Treas. Reg. Section 1.643(b)-1. [21] See Commissioner v. Estate of Hubert, 520 U.S. 93 (1997). [22] See Treas. Reg. Section 20.2056(b)-4(d)(1)(ii) [23] Crummey v. Commiss’r, 397 F2d 82 (9th Cir. 1968) [24] Estate of Cristofani v. Comm’r, 97 TC 74 (1991) |