Without regard to any alternate valuation dates

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Without regard to any alternate valuation dates, all of the following are correct rules pertaining to basis adjustments, except:

A. The basis of appreciated stocks owned by a decedent is stepped-up to fair market value as of the decedent’s date of death.

B. The basis of depreciated stocks owned by a decedent is stepped down to fair market value as of the decedent’s date of death.

C. The basis of an appreciated IRA owned by a decedent is stepped up to the IRA’s fair market value as of the decedent’s date of death.

D. The donor’s basis in stock donated during donor’s lifetime generally becomes the donee’s new basis in the stock.

E. A donee of gifted appreciated stock may receive an increase in basis attributed to a portion of any gift tax paid by the donor.

Reference no: EM131514771

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