No Need to Worry About Zero Basis Property

Final Regulations dealing with reporting inherited property eliminated the zero basis provision from the Proposed Regulations. This is a good thing.

Photo by Arnaldo Aldana on Unsplash

Proposed and Temporary Regulations were released way back in March 2016 dealing with required reporting of basis in assets inherited from farmers and taxpayers who were required to file a federal estate tax return.

These proposed regulations outlined how to report basis for these assets and one of the provisions indicated that if you did not timely report the basis for an asset, then the IRS asserted that your basis in that asset was zero.