Think I’m noticing a trend here. A few months ago, IRS finally came out in support of using Clayton election for portability planning, after years of silence led to suspicion otherwise, and now years after repeal of 1022, the IRS decides to issue regs formally endorsing common sense in dealing with property subjected to 1022’s application.
Guess they are hurrying to tidy up loose ends in their theological worldview of progressive taxation before it all comes crashing down in a few months with Trump and Congress re-introducing something akin to 2010 AD’s Section 2210 repeal of the estate tax, along with its Section 1022 carryover basis. May not happen this year, but it certainly seems we are headed in that direction.
Despite the seemingly fleeting, long-expired, application of Sections 2210 and 1022, the IRS released new regulations relating to the repealed Section 1022 (“new regulations”) on Jan. 19, 2017.3 The new regulations emphasize that while the 1022 election may only have been available for property of those dying in 2010, the modified basis of that property continues to affect transactions and property owners.4 As the IRS emphasized in the Background to the New Regulations, the repealed Section 1022 will continue to be relevant until the last of the property inherited or bequeathed from a decedent who died in 2010, and whose executor made a 1022 election, is sold or otherwise disposed of.
Source: Dead, But Not Forgotten---------------------Find me @guntrust on neutral platforms such as these: