The Election of § 2032 (Alternate Valuation Date) for Estate

question 130

Multiple Choice

The election of § 2032 (alternate valuation date) for estate tax purposes:

• A)Decreases the basis of all assets included in the decedent's estate.
• B)Has no effect on the overall basis of the assets belonging to the surviving spouse's share of the community property.
• C)Means that some assets could end up having a higher income tax basis than their date of death value.
• D)Has no effect on income tax basis if the heirs do not choose to make the election.
• E)None of the above.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has reasonably relied on that promise to their detriment.

Reasonable Reliance

A principle where a party acts based on the representation or promise of another, believing it to be true.

Bilateral Contract

An agreement involving two parties where each promises to perform an act in exchange for the other's act.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party, which upon performance, binds the first party to its promise.