Form 8939 PDF Details

Navigating the complexities of estate planning and tax responsibilities after a loved one’s passing can often present a daunting task for executors and beneficiaries alike. Among the various IRS forms that may need to be considered during this time is Form 8939, officially titled "Allocation of Increase in Basis for Property Acquired From a Decedent." Designed for use in specific circumstances, this form plays a pivotal role for estates of decedents who passed away between December 31, 2009, and January 1, 2011. It allows for the allocation of increased basis for property inherited from the deceased, an aspect that can significantly affect the tax implications for beneficiaries. Unlike many tax forms, Form 8939 is to be filed separately and not in conjunction with the personal income tax return, Form 1040. It contains detailed sections for the declaration of the decedent and executor information, the computation of basis allocation, and the explicit instructions for disclosing property acquired from the decedent. The objective is to adjust the basis of such property, potentially reducing capital gains taxes when the property is eventually sold. This form also includes provisions for amending previously filed forms and requires thorough documentation and adherence to specific filing addresses, underlining the importance of precision and compliance in its completion.

QuestionAnswer
Form NameForm 8939
Form Length7 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min 45 sec
Other namesf8939 irs f8939 form

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Form 8939

Department of the Treasury Internal Revenue Service

Allocation of Increase in Basis for Property

Acquired From a Decedent

File separately. Do NOT file with Form 1040. See below for filing address.

To be filed for decedents dying after December 31, 2009, and before January 1, 2011.

OMB No. 1545-2203

2010

If this is an amended Form 8939, check here

If filing this Form 8939 revokes a timely and otherwise valid section 1022 election, check here

Part 1—Decedent and Executor

Part 2—Basis Allocation Computation

1a

Decedent’s first (given) name and middle initial (and maiden name, if any)

1b

Decedent’s last (family) name

2 Decedent’s Social Security No.

 

 

 

 

 

 

3

County, state, and ZIP code, or foreign country, of legal residence

4

Check if decedent was a nonresident

5 Date of death

 

 

(domicile) at time of death

 

and was not a citizen of the U.S. See

 

 

 

 

 

instructions. If checked, enter nationality

 

 

 

 

 

(citizenship)

 

 

 

 

 

 

 

 

6b Executor’s address (number and street including apartment or suite number; city,

 

 

 

town, or post office; state; and ZIP code) and phone number

 

 

 

 

 

 

 

6a

Name of executor (see instructions)

 

 

 

 

 

 

 

 

 

 

6c

Executor’s social security number (see instructions)

 

 

 

 

 

 

 

 

Phone no. (

)

 

 

 

 

 

 

7Marital status of the decedent at time of death: Married

Widow or widower— Name, SSN, and date of death of deceased spouse

Single

Legally separated

Divorced— Date divorce decree became final

8a Surviving spouse’s name

8b Spouse's social security number

 

 

9Individuals (other than the surviving spouse), trusts, estates, or other entities who acquired property from the estate (see instructions).

Name of individual, trust, estate, or other entity

Taxpayer identification number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Built-in loss (see instructions)

10

11

Capital loss carryforward (see instructions)

11

12

Net operating loss carryforward (see instructions)

12

12a

Add lines 10, 11, and 12 (see instructions)

12a

12b

Enter $1,300,000 or $60,000 (see instructions)

12b

12c

General Basis Increase. Add the amounts on line 12a and line 12b (see instructions)

12c

13

Enter the total amount of General Basis Increase allocated on all Schedules A line 4B, column (e)(i) (see

 

 

instructions)

13

14Enter the total amount of Spousal Property Basis Increase allocated on all Schedules A line 4B, column (e)(ii)

(see instructions)

. . . . . . . . . . . . . . . . . . . . . . . . . . .

14

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. I (executor) understand that if any other person files a Form 8939 or Form 706 (or Form 706-NA) with respect to this decedent or estate, that my name and address will be shared with such person, and I (executor) also hereby request the IRS share with me the name and address of any person who files a Form 8939 or Form 706 (or Form 706-NA) with respect to this decedent or estate. Declaration of preparer other than the executor is based on all information of which preparer has any knowledge.

Sign

Here

Paid

Preparer

Use Only

 

 

 

 

 

Signature of executor

 

 

 

 

 

 

 

 

 

Signature of executor

 

 

 

 

Print/Type preparer’s name

 

Preparer’s signature

 

Date

 

 

Firm’s name

 

 

 

 

 

 

 

 

Firm’s address

 

 

 

 

▲ ▲

Date

Date

Check

if

PTIN

self-employed

 

Firm’s EIN

 

 

Phone no.

 

 

Send Form 8939 (including accompanying schedules and statements) to: Internal Revenue Service, Estate & Gift Stop 824G, 201 W. Rivercenter Blvd., Covington, KY 41011

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions for this form.

Cat. No. 37755W

Form 8939 (2010)

SCHEDULE A (Form 8939)

Department of the Treasury Internal Revenue Service

Disclosure of Property Acquired From the Decedent (and Recipient Statement)

Recipients of Schedule A: For more information and details on the information shown on this schedule, see the instructions for Form 8939 and www.irs.gov/form8939.

Estate of:

Decedent’s Social Security Number

Number of

Complete a separate Schedule A for each recipient of property, including the decedent’s estate. See instructions.

Part I General Information

1a

Name of executor

1b Executor’s address (number and street including apartment or suite

 

 

number; city, town, or post office; state; and ZIP code) and phone number.

 

 

 

 

1c

Estate's taxpayer identification number (TIN)

 

 

 

 

Phone no. (

)

2a

Name and address of recipient

2b Recipient’s taxpayer identification number (TIN)

 

 

 

 

Part II Property Information

3For all property acquired from the decedent by the recipient named in line 2a the basis of which at the date of death is greater than or equal to its fair market value at the date of death, provide the following information. See instructions.

Item No.

(a)

Description of property

(b)

Date decedent

acquired property

(c)

Adjusted basis at

death

(d)

FMV

at death

(e)

Amount of gain

that would be

ordinary income

3A Totals from continuation schedules (or additional sheets) attached to this schedule

(If more space is needed, attach the continuation schedule at the end of this Form).

4For all property acquired from the decedent by the recipient named in line 2a the basis of which at the date of death is less than fair market value at the date of death, provide the following information. By checking the box in column (e)(ii) on line 4 for each item of property that was sold prior to distribution and to which I am allocating Spousal Property Basis Increase, I hereby certify in accordance with section 4.02(3) of Revenue Procedure 2011-41 that all of the net proceeds from the sale of such property or property interest to which Spousal Property Basis Increase has been allocated will be distributed to or for the benefit of the surviving spouse in a manner that would qualify property as qualified spousal property, as defined in section 1022(c)(3). See instructions.

Item

No.

(a)

Description of property

(b)

(c)

(d)

Date decedent

Adjusted basis

FMV at death

acquired

at death

 

property

 

 

 

 

 

(e)*

Allocation of basis increase

(i)

(ii)

General basis

Spousal property

increase

basis increase

(f)

Amount of gain

that would be

ordinary income

4A Totals from continuation schedules (or additional sheets) attached to this schedule

4B Total for columns (e)(i) and (e)(ii)

*The sum of the amounts in columns (e)(i) and (e)(ii) on each line cannot exceed the difference between the amounts in columns (c) and (d) on that line.

Schedule A—Page 2

Form 8939 (2010)

(Make copies of this schedule before completing if you will need more than one schedule).

Estate of:

Decedent’s Social Security Number

Number of

SCHEDULE A, LINE 3

CONTINUATION SHEET

Item No.

(a)

Description

of the property

(b)

Date decedent

acquired property

(c)

Adjusted basis at

death

(d)

FMV

at death

(e)

Amount of gain that would be ordinary income

Totals for columns (c) and (d) Enter here and include on line 3A of Schedule A . . . .

Form 8939 (2010)

(Make copies of this schedule before completing if you will need more than one schedule).

Estate of:

Decedent’s Social Security Number

Number of

SCHEDULE A, LINE 4

CONTINUATION SHEET

By checking the box in column (e)(ii) on line 4 for each item of property that was sold prior to distribution and to which I am allocating Spousal Property Basis Increase, I hereby certify in accordance with section 4.02(3) of Revenue Procedure 2011-41 that all of the net proceeds from the sale of such property or property interest to which Spousal Property Basis Increase has been allocated will be distributed to or for the benefit of the surviving spouse in a manner that would qualify property as qualified spousal property, as defined in section 1022(c)(3).

Item

No.

(a)

Description of property

(b)

(c)

(d)

Date decedent

Adjusted basis

FMV at death

acquired

at death

 

property

 

 

 

 

 

(e)

Allocation of basis increase

(i)

(ii)

General basis

Spousal property

increase

basis increase

 

 

(f)

Amount of gain

that would be ordinary income

Totals for columns (e)(i) and (e)(ii) Enter here and include on line 4A of Schedule A . . . . .

Form 8939 (2010)

Estate of:

Decedent’s Social Security Number

Number of

SCHEDULE R—GENERATION-SKIPPING TAX EXEMPTION

Part 1. GST Exemption

1

Maximum allowable GST exemption

. . . . .

1

 

2

Total GST exemption allocated by the decedent to decedent’s lifetime transfers . .

. . . . .

2

 

3

Total GST exemption allocated by the executor, using Form 709, to decedent’s lifetime transfers .

3

 

4

GST exemption allocated on line 4 of Schedule R, Part 2

. . . . .

4

 

5

Total GST exemption allocated on line 4 of Schedule(s) R-1

. . . . .

5

 

6

Total GST exemption allocated to inter vivos transfers and direct skips (add lines 2–5)

. . . . .

6

 

7

GST exemption available to allocate to trusts (subtract line 6 from line 1) . . . .

. . . . .

7

 

8

Allocation of GST exemption to trusts (as defined for GST tax purposes):

 

 

 

 

A

B

C

D

 

E

 

 

Trust’s inclusion

 

 

 

GST exemption

Additional GST exemption

 

Name of trust

Trust’s EIN (if any)

allocated on lines 2–5,

allocated (see instructions)

ratio (optional—see

 

 

 

above (see instructions)

 

 

instructions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8D Total. May not exceed line 7, above . . . . . . . . . . . . . .

8D

Schedule R—Page 3

Form 8939 (2010)

Estate of:

Part 2. Direct Skips

Decedent’s Social Security Number

Name of skip person

Description of property interest transferred

Value

1

Total value of all property interests listed above

1

2

State death taxes and other charges borne by the property interests listed above

2

3

Total tentative maximum direct skips (subtract line 2 from line 1)

3

4

GST exemption allocated

4

Schedule R—Page 4

SCHEDULE R-1 (Form 8939)

Department of the Treasury Internal Revenue Service

Direct Skips From a Trust

Executor: File one copy with Form 8939 and send two copies to the fiduciary. Do not pay any tax. See instructions for details.

Fiduciary: See instructions for details.

Name of trust

 

Trust’s EIN

 

 

 

Name and title of fiduciary

Name of decedent

 

 

Address of fiduciary (number and street)

Decedent’s SSN

 

 

 

 

City, state, and ZIP code

Name of executor

 

 

Address of executor (number and street)

City, state, and ZIP code

 

 

 

Date of decedent’s death

 

 

 

 

 

Description of property interests subject to the direct skip

Value

1

Total value of all property interests listed above

1

2

State death taxes and other charges borne by the property interests listed above

2

3

Tentative maximum direct skip from trust (subtract line 2 from line 1)

3

4

GST exemption allocated

4

5

Subtract line 4 from line 3

5

Schedule R-1—Page 5

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This PDF form requires specific details; in order to guarantee accuracy and reliability, make sure you pay attention to the guidelines further down:

1. Firstly, when completing the Form 8939, beging with the page that includes the following blank fields:

Form 8939 completion process detailed (part 1)

2. When this array of fields is completed, go on to enter the applicable information in all these - n o i t a t u p m o C n o i t a c o, l l, A s s a B, t r a P, Builtin loss see instructions, instructions, Enter the total amount of Spousal, see instructions, Under penalties of perjury I, Sign Here, Signature of executor Signature, PrintType preparers name, Preparers signature, Date, and Date Date.

How you can complete Form 8939 stage 2

3. In this part, take a look at Paid Preparer Use Only, PrintType preparers name, Preparers signature, Date, Firms name, Firms address, Check if selfemployed, PTIN, Firms EIN, Phone no, Send Form including accompanying, For Privacy Act and Paperwork, Cat No W, and Form. Each of these are required to be completed with utmost accuracy.

Completing part 3 in Form 8939

4. Filling in Department of the Treasury, Recipients of Schedule A For more, Estate of, Decedents Social Security Number, Number, Complete a separate Schedule A for, Part I General Information, a Name of executor, c Estates taxpayer identification, a Name and address of recipient, Part II Property Information, b Executors address number and, Phone no, b Recipients taxpayer, and For all property acquired from is crucial in this section - be certain to invest some time and fill in every field!

Decedents Social Security Number, Complete a separate Schedule A for, and a Name of executor in Form 8939

When it comes to Decedents Social Security Number and Complete a separate Schedule A for, ensure that you double-check them here. The two of these are thought to be the most important fields in the file.

5. When you come close to the conclusion of the form, you will find a couple more things to undertake. Particularly, increase, basis increase, A Totals from continuation, The sum of the amounts in columns, that line, and Schedule APage must all be filled out.

The right way to prepare Form 8939 part 5

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