IRS Releases Form 8939

October 6, 2011

Authored by: Stephanie Moll

The IRS has released Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent.  Instructions for completing the Form have not been released.

This Form is to be used by the estates of decedents who died in 2010 and have elected not to be subject to the federal estate tax.  While the estate will not be subject to the federal estate tax, the estate’s executors will only be able to allocate up to $1.3 million in basis increase to the decedent’s assets, plus an additional $3 million in basis increase for certain gifts to a surviving spouse (outright gifts and qualified terminable interest property “QTIP”) .