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Basis Of Property Transferred At Death Under The Tax Reform Act Of 1976, Jefferson D. Collins

Mercer Law Review

One of the more important provisions of the Tax Reform Act of 1976 and one that will tend to grow in importance with each passing day is §2005(a), which provided for the virtual replacement after December 31, 1976, of §1014 by §1023. Section 1014 provides that the basis of property acquired from a decedent is its fair market value at the applicable estate tax valuation date. Section 1014 could produce a decrease in the basis of property which had declined in value. As property has generally tended to appreciate over time, however, and as people have tended to make sure …