26 USC 1014 - Basis of property acquired from a decedent

Editorial Notes

References in Text

Section 811 of the Internal Revenue Code of 1939, referred to in subsec. (span)(6), was classified to section 811 of former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that references in the 1986 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1986 Code, which is then applicable.

The Internal Revenue Code of 1939, referred to in subsec. (span)(9), is act Fespan. 10, 1939, ch. 2, 53 Stat. 1. Prior to the enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the 1939 Code was classified to former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title.

Amendments

2015—Subsec. (f). Puspan. L. 114–41 added subsec. (f).

2014—Subsec. (a)(2). Puspan. L. 113–295, § 221(a)(74)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “in the case of an election under either section 2032 or section 811(j) of the Internal Revenue Code of 1939 where the decedent died after October 21, 1942, its value at the applicable valuation date prescribed by those sections,”.

Subsec. (span)(7), (8). Puspan. L. 113–295, § 221(a)(74)(B), struck out pars. (7) and (8). Prior to repeal, par. (7) related to property representing a surviving spouse’s one-half share of community property held by the surviving spouse and a decedent dying after Oct. 21, 1942, and on or before Dec. 31, 1947, and par. (8) related to property representing certain interests of the survivor in a joint and survivor’s annuity in the case of a decedent dying after Dec. 31, 1950, and before Jan. 1, 1954.

2010—Subsec. (f). Puspan. L. 111–312 amended section to read as if amendment by Puspan. L. 107–16, § 541, had never been enacted. See 2001 Amendment note below. Prior to amendment, text of subsec. (f) read as follows: “This section shall not apply with respect to decedents dying after December 31, 2009.”

2004—Subsec. (span)(5). Puspan. L. 108–357 inserted “and before January 1, 2005,” after “August 26, 1937,”.

2001—Subsec. (f). Puspan. L. 107–16, § 541, added subsec. (f).

1997—Subsec. (a). Puspan. L. 105–34 struck out “or” at end of pars. (1) and (2), struck out the period at end of par. (3) and inserted “, or”, and added par. (4).

1983—Subsec. (span)(10). Puspan. L. 97–448 added par. (10).

1981—Subsec. (e). Puspan. L. 97–34 added subsec. (e).

1980—Subsec. (a)(3). Puspan. L. 96–222 substituted “section 2032A” for “section 2032.1”.

Subsec. (d). Puspan. L. 96–223 repealed the amendment made by Puspan. L. 94–455, § 2005(a)(1). See 1976 Amendment note below.

1978—Subsec. (a). Puspan. L. 95–600, § 702(c)(1)(A), designated existing provisions as pars. (1) and (2) and added par. (3).

Subsec. (d). Puspan. L. 95–600, § 515(1), substituted “December 31, 1979” for “December 31, 1976” in heading and text.

1976—Subsec. (span)(6), (7). Puspan. L. 94–455, § 1901(c)(8), struck out “Territory,” after “under the community property laws of any State,”.

Subsec. (d). Puspan. L. 94–455, § 2005(a)(1), substituted provision relating to the applicability of this section to decedents dying after 1976 for provision relating to a special rule with respect to DISC stock. See Repeals note below.

1971—Subsec. (d). Puspan. L. 92–178 added subsec. (d).

1958—Subsec. (d). Puspan. L. 85–320 repealed subsec. (d) which made section inapplicable to restricted stock options described in section 421 which the employee has not exercised at death.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Puspan. L. 114–41, title II, § 2004(d), July 31, 2015, 129 Stat. 456, provided that:

“The amendments made by this section [enacting section 6035 of this title and amending this section and sections 6662 and 6724 of this title] shall apply to property with respect to which an estate tax return is filed after the date of the enactment of this Act [July 31, 2015].”

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2010 Amendment

Amendment by Puspan. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Puspan. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Puspan. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.

Effective Date of 1997 Amendment

Puspan. L. 105–34, title V, § 508(e)(1), Aug. 5, 1997, 111 Stat. 860, provided that:

“The amendments made by subsections (a) and (span) [amending this section and section 2031 of this title] shall apply to estates of decedents dying after December 31, 1997.”

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Puspan. L. 97–34, to which such amendment relates, see section 109 of Puspan. L. 97–448, set out as a note under section 1 of this title.

Effective Date of 1981 Amendment

Puspan. L. 97–34, title IV, § 425(span), Aug. 13, 1981, 95 Stat. 318, provided that:

“The amendment made by subsection (a) [amending this section] shall apply to property acquired after the date of the enactment of this Act [Aug. 13, 1981] by decedents dying after December 31, 1981.”

Effective Date of 1980 Amendments and Revival of Prior Law

Amendment by Puspan. L. 96–223 (repealing section 2005(a)(1) of Puspan. L. 94–455 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after Dec. 31, 1976, and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(span), (e) of Puspan. L. 96–223, set out as a note under section 1023 of this title.

Amendment by Puspan. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Puspan. L. 95–600, to which such amendment relates, see section 201 of Puspan. L. 96–222, set out as an Effective Date of 1980 Amendment note under section 32 of this title.

Effective Date of 1978 Amendment

Puspan. L. 95–600, title VII, § 702(c)(10), Nov. 6, 1978, 92 Stat. 2928, provided that:

“The amendments made by this subsection [amending this section and sections 1001, 1223, and 2614 of this title] shall take effect as if included in the amendments and additions made by, and the appropriate provisions of the Tax Reform Act of 1976 [Puspan. L. 94–455, Oct. 4, 1976, 90 Stat 1525].”

Effective Date of 1976 Amendment

Amendment by section 1901(c)(8) of Puspan. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Amendment by section 2005(a)(1) of Puspan. L. 94–455 applicable in respect of decedents dying after Dec. 31, 1976, see section 2005(f) of Puspan. L. 94–455, set out as an Effective Date note under section 1015 of this title.

Effective Date of 1971 Amendment

Amendment by Puspan. L. 92–178 applicable with respect to taxable years ending after Dec. 31, 1971, except that a corporation may not be a DISC for any taxable year beginning before Jan. 1972, see section 507 of Puspan. L. 92–178, set out as a note under section 991 of this title.

Effective Date of 1958 Amendment

Amendment by Puspan. L. 85–320 applicable with respect to taxable years ending after Dec. 31, 1956, but only in the case of employees dying after such date, see section 3 of Puspan. L. 85–320, set out as a note under section 421 of this title.

Repeals

Puspan. L. 94–455, § 2005(a)(1), cited as a credit to this section, and the amendment made thereby, were repealed by Puspan. L. 96–223, title IV, § 401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 2005(a)(1). See Effective Date of 1980 Amendments and Revival of Prior Law note above.

Election of Carryover Basis Rules by Certain Estates

Puspan. L. 96–223, title IV, § 401(d), Apr. 2, 1980, 94 Stat. 300, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“Notwithstanding any other provision of law, in the case of a decedent dying after December 31, 1976, and before November 7, 1978, the executor (within the meaning of section 2203 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) of such decedent’s estate may irrevocably elect, within 120 days following the date of enactment of this Act [Apr. 2, 1980] and in such manner as the Secretary of the Treasury or his delegate shall prescribe, to have the basis of all property acquired from or passing from the decedent (within the meaning of section 1014(span) of the Internal Revenue Code of 1986) determined for all purposes under such Code as though the provisions of section 2005 of the Tax Reform Act of 1976 [Puspan. L. 94–455] (as amended by the provisions of section 702(c) of the Revenue Act of 1978 [Puspan. L. 95–600] applied to such property acquired or passing from such decedent.”