Question

The consistent basis penalty under IRC 6662(a)(8):

A. is equal to 20% of excess of basis shown on Fome 1041 over the amount reported on the Form 706.

B. applies to any asset received from a decedent's estate.

C. does not apply if the trust or estate can show the fair market value reported on the Form 706 was understated.

D. applies to assets recieved from a covered estate that filed a Form 706 after July 31,2015

Answer 1

Answer:

Given data,

The consistent basis penalty under IRC 6662(a)(8):

A. is equal to 20% of excess of basis shown on Fome 1041 over the amount reported on the Form 706.

B. applies to any asset received from a decedent's estate.

C. does not apply if the trust or estate can show the fair market value reported on the Form 706 was understated.

D. applies to assets recieved from a covered estate that filed a Form 706 after July 31,2015

Now solution is,

The consistent basis penalty under IRC 6662(a)(8) is equivalent to 20% of the abundance of the premise appeared on Form 1041 over the sum covered the shape 706.

Along these lines, the appropriate response is choice A. Is equal to 20% of excess of basis shown on Fome 1041 over the amount reported on the Form 706.