Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Internal Revenue Code section 1014 is one of the most taxpayer friendly code sections and is frequently referred to as the “step-up in basis” code section. While the application of IRC 1014 is obvious in many instances, too often practitioners pass up opportunities to adjust the basis of assets that fall under its rules. In this course, we will review the basic application of IRC 1014 and then explore less common applications of the basis adjustment rules. We will also examine state planning methods that will maximize taxpayers’ benefit from the application of these rules.
Publication Date: July 2022
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Deconstructing IRC § 1014
- Step Up in Basis
- Assets Acquired from the Decedent
- Basis Consistency Reporting
- Establishing the Date of Death Value
- Calculating Fair Market Value
- Alternate Valuation Date and Special Valuation
- What is the Gross Estate
- Traditional Estate Planning AB Trusts & the Basis Adjustments
- Reporting Post Death Transactions
Learning Objectives
- Identify the application of IRC 1014 and how it benefits taxpayers by adjusting the cost basis of assets at the death of a taxpayer
- Describe the importance of structuring an estate plan to incorporate the utilization of the basis adjustment rules
- Identify hidden basis adjustment opportunities
- Recognize how to analyze the tax savings that can be achieved by adjusting the tax basis at death
- Identify how to recommend estate planning techniques to maximize the benefits of the tax basis adjustment
- Identify which IRC the basic rule that the basis of property acquired from a decedent is the fair market value of such assets as of decedent's date of death relates to
- Identify the 2022 basic exclusion amount
- Identify the gold standard for showing fair market value with respect to real estate
- Differentiate which court case found that an asset is valued for purposes of estate tax based on what the decedent owned as of his date of death and not based on how the asset is later divided among beneficiaries
- Recognize which Schedule of Form 1041 is used to report capital gains and losses
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.