Alternative methods for valuing qualified real property . Taxation of commodities inherited . Alternatively, the personal representative of the estate could have sold the corn and used the proceeds to pay off any outstanding debt of Sam's. This would result in no capital gains tax liability by the heirs . The purpose of alternate valuation is to reduce the tax liability if the total value of the estate's property has decreased since the date of the decedent's death.
Alternative valuation applies to all of the property in the estate.
It cannot be used for only part of the property, as is the case with special-use valuation. However, the personal representative may choose alternate valuation and also use special-use valuation for qualified real property. The choice must be made on the first estate tax return filed for the estate. Alternate valuation rules . When a capital gain dividend is declared and paid by a regulated investment company on its stock between the date of the decedent's death and the alternate valuation date, the capital gain dividend is not computed into the value of the decedent's gross estate on the alternate valuation date.