Tax End Notes

[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)