26 U.S.C. § 2032
Alternate valuation
# (a) General
The value of the gross estate may be determined, if the executor so elects, by valuing all the property included in the gross estate as follows:
(1) In the case of property distributed, sold, exchanged, or otherwise disposed of, within 6 months after the decedent’s death such property shall be valued as of the date of distribution, sale, exchange, or other disposition.
(2) In the case of property not distributed, sold, exchanged, or otherwise disposed of, within 6 months after the decedent’s death such property shall be valued as of the date 6 months after the decedent’s death.
(3) Any interest or estate which is affected by mere lapse of time shall be included at its value as of the time of death (instead of the later date) with adjustment for any difference in its value as of the later date not due to mere lapse of time.
# (b) Special rules
No deduction under this chapter of any item shall be allowed if allowance for such items is in effect given by the alternate valuation provided by this section. Wherever in any other subsection or section of this chapter reference is made to the value of property at the time of the decedent’s death, such reference shall be deemed to refer to the value of such property used in determining the value of the gross estate. In case of an election made by the executor under this section, then— (1) for purposes of the charitable deduction under section 2055 or 2106(a)(2), any bequest, legacy, devise, or transfer enumerated therein, and (2) for the purpose of the marital deduction under section 2056, any interest in property passing to the surviving spouse, shall be valued as of the date of the decedent’s death with adjustment for any difference in value (not due to mere lapse of time or the occurrence or nonoccurrence of a contingency) of the property as of the date 6 months after the decedent’s death (substituting, in the case of property distributed by the executor or trustee, or sold, exchanged, or otherwise disposed of, during such 6-month period, the date thereof).
# (c) Election must decrease gross estate and estate tax
No election may be made under this section with respect to an estate unless such election will decrease— (1) the value of the gross estate, and (2) the sum of the tax imposed by this chapter and the tax imposed by chapter 13 with respect to property includible in the decedent’s gross estate (reduced by credits allowable against such taxes).
# (d) Election
(1) In general The election provided for in this section shall be made by the executor on the return of the tax imposed by this chapter. Such election, once made, shall be irrevocable. (2) Exception No election may be made under this section if such return is filed more than 1 year after the time prescribed by law (including extensions) for filing such return.
Source: view the official text
Cited by 53
- 26 CFR § 1.1014-1 — Basis of property acquired from a decedent.
- 26 CFR § 1.1014-10 — Basis of property acquired from a decedent must be consistent with property's Federal estate tax value.
- 26 CFR § 1.1014-3 — Other basis rules.
- 26 CFR § 1.1014-5 — Gain or loss.
- 26 CFR § 1.1014-9 — Special rule with respect to DISC stock.
- 26 CFR § 1.1245-2 — Definition of recomputed basis.
- 26 CFR § 1.1250-3 — Exceptions and limitations.
- 26 CFR § 1.1251-4 — Exceptions and limitations.
- 26 CFR § 1.1252-2 — Special rules.
- 26 CFR § 1.1254-3 — Section 1254 costs immediately after certain acquisitions.
- 26 CFR § 1.1254-4 — Special rules for S corporations and their shareholders.
- 26 CFR § 1.1254-5 — Special rules for partnerships and their partners.
Show 41 more
- 26 CFR § 1.303-2 — Requirements.
- 26 CFR § 1.306-3 — Section 306 stock defined.
- 26 CFR § 1.421-2 — General rules.
- 26 CFR § 1.6035-1 — Basis information to persons acquiring property from decedent.
- 26 CFR § 1.617-3 — Recapture of exploration expenditures.
- 26 CFR § 1.642(c)-6 — Valuation of a remainder interest in property transferred to a pooled income fund.
- 26 CFR § 1.664-2 — Charitable remainder annuity trust.
- 26 CFR § 1.664-4 — Calculation of the fair market value of the remainder interest in a charitable remainder unitrust.
- 26 CFR § 1.664-4A — Valuation of charitable remainder interests for which the valuation date is before June 1, 2023.
- 26 CFR § 1.996-5 — Adjustment to basis.
- 26 CFR § 16A.1255-2 — Special rules.
- 26 CFR § 20.2010-2 — Portability provisions applicable to estate of a decedent survived by a spouse.
- 26 CFR § 20.2031-1 — Definition of gross estate; valuation of property.
- 26 CFR § 20.2032-1 — Alternate valuation.
- 26 CFR § 20.2036-1 — Transfers with retained life estate.
- 26 CFR § 20.2037-1 — Transfers taking effect at death.
- 26 CFR § 20.2040-1 — Joint interests.
- 26 CFR § 20.2041-3 — Powers of appointment created after October 21, 1942.
- 26 CFR § 20.2053-4 — Deduction for claims against the estate.
- 26 CFR § 20.2053-7 — Deduction for unpaid mortgages.
- 26 CFR § 20.2055-2 — Transfers not exclusively for charitable purposes.
- 26 CFR § 20.2056(b)-4 — Marital deduction; valuation of interest passing to surviving spouse.
- 26 CFR § 20.2056A-6 — Amount of tax.
- 26 CFR § 20.2106-1 — Estates of nonresidents not citizens; taxable estate; deductions in general.
- 26 CFR § 20.2107-1 — Expatriation to avoid tax.
- 26 CFR § 20.6018-1 — Returns.
- 26 CFR § 20.6018-3 — Returns; contents of returns.
- 26 CFR § 20.6018-4 — Returns; documents to accompany the return.
- 26 CFR § 20.6036-1 — Notice of qualification as executor of estate of decedent dying before 1971.
- 26 CFR § 20.6075-1 — Returns; time for filing estate tax return.
- 26 CFR § 20.6166A-3 — Acceleration of payment.
- 26 CFR § 20.7520-1 — Valuation of annuities, unitrust interests, interests for life or terms of years, and remainder or reversionary interests.
- 26 CFR § 20.7520-2 — Valuation of charitable interests.
- 26 CFR § 26.2662-1 — Generation-skipping transfer tax return requirements.
- 26 CFR § 28.2801-4 — Liability for and payment of tax on covered gifts and covered bequests; computation of tax.
- 26 U.S.C. § 1014 — Basis of property acquired from a decedent
- 26 U.S.C. § 1016 — Adjustments to basis
- 26 U.S.C. § 2055 — Transfers for public, charitable, and religious uses
- 26 U.S.C. § 2106 — Taxable estate
- 26 U.S.C. § 2624 — Valuation
- 26 U.S.C. § 996 — Rules for allocation in the case of distributions and losses
Nearby sections (25 sections)
- 1563 · Definitions and special rules
- 1564 · Repealed. Pub. L. 101–508, title XI, § 11801(a)(38), Nov. 5,…
- 2001 · Imposition and rate of tax
- 2002 · Liability for payment
- 2010 · Unified credit against estate tax
- 2011 · Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(95)(A)(i),…
- 2012 · Credit for gift tax
- 2013 · Credit for tax on prior transfers
- 2014 · Credit for foreign death taxes
- 2015 · Credit for death taxes on remainders
- 2016 · Recovery of taxes claimed as credit
- 2031 · Definition of gross estate
- 2032 · Alternate valuation
- 2032A · Valuation of certain farm, etc., real property
- 2033 · Property in which the decedent had an interest
- 2033A · Renumbered § 2057
- 2034 · Dower or curtesy interests
- 2035 · Adjustments for certain gifts made within 3 years of decedent’s…
- 2036 · Transfers with retained life estate
- 2037 · Transfers taking effect at death
- 2038 · Revocable transfers
- 2039 · Annuities
- 2040 · Joint interests
- 2041 · Powers of appointment
- 2042 · Proceeds of life insurance