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IRS.gov Website
Publication 4895
taxmap/pubs/p4895-004.htm#en_us_publink1000263712

Amount of Basis Increase(p3)

rule
The executor can allocate General Basis Increase (defined in General Basis Increase, later), and/or Spousal Property Basis Increase (defined in Spousal Property Basis Increase, later) to eligible property (defined earlier) but not in excess of the amount needed to increase the decedent's adjusted basis to the property's FMV as of the date of the decedent's death. The result is that, for each property, the sum of the decedent’s adjusted basis in that property and the Basis Increase allocated to that property cannot exceed the FMV of that property on the decedent’s date of death.
The executor can allocate Basis Increase to property owned by and acquired from the decedent on a property-by-property basis. For example, the executor can allocate Basis Increase to one or more shares of stock or to a particular block of stock rather than to the decedent’s entire holding of that stock.
Basis Increase may not be allocated separately to a life estate and remainder interest in the same property.
taxmap/pubs/p4895-004.htm#en_us_publink1000263713

Decedent's Adjusted Basis(p3)

rule
Generally, the adjusted basis of the property in the hands of the decedent as of the date of the decedent's death is the decedent's cost or other basis, adjusted as required by sections 1016, 1017, and 1018, or as otherwise specifically provided for under applicable provisions of Internal Revenue laws.
taxmap/pubs/p4895-004.htm#en_us_publink1000263714

Fair Market Value (FMV)(p3)

rule
Generally, for purposes of section 1022, the FMV of property is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.
taxmap/pubs/p4895-004.htm#en_us_publink1000263715

Basis Increase(p3)

rule
Basis Increase is the sum of the General Basis Increase (defined below) and the Spousal Property Basis Increase (defined below).
taxmap/pubs/p4895-004.htm#en_us_publink1000263716

General Basis Increase(p3)

rule
General Basis Increase is the sum of the Aggregate Basis Increase (defined below) and the Carryovers/Unrealized Losses Increase (defined in Rev. Proc. 2011-41). However, for a decedent who was neither a resident nor citizen of the United States, the General Basis Increase is limited to the Aggregate Basis Increase (limited as described below).
taxmap/pubs/p4895-004.htm#en_us_publink1000263717

Aggregate Basis Increase(p3)

rule
Aggregate Basis Increase is $1,300,000. However, for a decedent who was neither a resident nor citizen of the United States, the Aggregate Basis Increase is $60,000.
taxmap/pubs/p4895-004.htm#en_us_publink1000263718

Spousal Property Basis Increase(p3)

rule
Spousal Property Basis Increase is $3,000,000.
Generally, the executor can allocate Spousal Property Basis Increase only to qualified spousal property that was both acquired from and owned by the decedent. Qualified spousal property means:
For more information on outright transfer property and QTIP, see Spousal Property Basis Increase, in the Instructions for Form 8939.