IRS Issues New Basis Consistency Regulations

On March 4 2016, the IRS issued proposed regulations regarding the basis of property acquired from a decedent. Section 1014 provides the general rule that the basis of property acquired from a decedent (i.e., a deathtime transfer) is the fair market value of the property at the date of the decedent's death (or the alternate valuation date). This is colloquially known as stepped-up or stepped-down basis, depending on whether there is an upward or downward adjustment. Section 1014(f) now generally...