The IRS released Chief Counsel Advice 200937028, which discusses the basis adjustment of assets in a grantor trust under Section 1014 of the Code. The advice disagrees with a taxpayer's position that assets should receive a basis adjustment equal to their fair market value at the grantor's death. The document explores different interpretations of asset acquisition by a trust, including bequest, purchase, or gift, and the implications under Sections 1014, 1012, and 1015.
documents/EFTA00597490.pdf
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