Draft Instructions For Form 1041, Schedule D, Reflect New Estate Tax Basis Reporting Requirement

Abstract

Recently-released draft instructions for Schedule D (Capital Gains and Losses), Form 1041 (US Income Tax Return for Estates and Trusts) confirm the requirement that an estate (or other person) required to file an estate tax return after Jul 31, 2015, must provide a statement that includes the estate tax value of property reported on the return to both the IRS and any beneficiary who receives property from the estate. If the property increases the estate tax liability, the beneficiary must use a basis consistent with the estate.