As sole heir, Dazie receives all of Mary’s property (adjusted basis of $1,400,000 and fair market value of $3,820,000). Six months after Mary’s death in 2017, the fair market value is $3,835,000.
a. Can the executor of Mary’s estate elect the alternate valuation date and amount? Explain.
b. What is Dazie’s basis for the property?
c. Assume instead that the fair market value six months after Mary’s death is $3,800,000. Respond to parts (a) and (b).