The General Rule for Determining the Basis of Inherited Property

question 15

True/False

The general rule for determining the basis of inherited property is that the basis in the hands of the heir is its fair market value at the date of death or at the alternative valuation date.

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Definitions:

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Federal Judiciary

The branch of the United States government responsible for interpreting the law, consisting of the Supreme Court and lower federal courts.

Executive Branch

The branch of government responsible for implementing, supporting, and enforcing the laws made by the legislative branch and interpreted by the judiciary.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.