Form 8971

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What is 8971 Form?

The fillable 8971 form is sent to the IRS by executors, who have to report the final tax value of the distributed estate. The form is known as the information on the beneficiaries acquiring the property from the decedent. It goes with the copy of Schedule A. Executors download the 8971 form from the IRS to inform the official on the tax return.

What is the purpose of IRS Form 8971?

IRS Form 8971 is used to report information about a decedent's estate. This form is used to report the value of the estate, the date of death, the name and address of the executor, and the name and address of the person who prepared the return.

What I need the 8971 form for?

  • The blank of 8971 must be downloaded by an executor of the estate;

  • This form is used for the calculation of taxes from the estate that beneficiaries receive from the decedent;
  • The person who is required to complete the 706 or 706-NA form has to add the 8971 form;
  • You don’t have to file the tax form if the return is filed only to elect portability of DSUE;
  • It is not required when the basic exclusion sum is bigger than gross estate and adjusted taxable gifts.

What must be reported on form 8971?

The Form 8971 must include the following information:

  • The name, address, and telephone number of the person responsible for the estate;
  • The date of death of the decedent;
  • The Social Security number of the decedent;
  • The total value of the estate;
  • The name and address of each beneficiary of the estate.

How to Fill Out the 8971 Form?

  • There are 5 pages of a form 8971 PDF document that must be completed. It is free of charge, and you can find it on the IRS website or this page. Use the online version or complete the hard copy after you print it from the website. File the next lines on the business form:
  • Part 1 is about decedent and executor: name, address, SSN, TIN;
  • Part 2 is about beneficiary information;
  • You have to sign the agreement on this page, stating the date;
  • The second page is Schedule A, where you have to provide general information and information on the acquired property.

Do I Need to File 8971?

You must file a Tax Form 8971 to report your basis in the property and the estate's basis in the property when you transfer the property to your heir(s).

If you do not file Form 8971, the IRS has said that when the heir(s) sells the property the heir(s) will have no basis in the property and will be taxed on the entire selling price of the property.

Organizations that work with IRS inheritance tax form

  • It must be filed to the IRS.

FAQ: IRS Form 8971 Popular Questions

  • How do I file Form 8971?

    You will receive Form 8971, which you must complete and submit with your tax return. If you are filing a federal estate tax return, you must file Form 8971 with your return.

    If you are not required to file a federal estate tax return, you should file Form 8971 with your federal income tax return.
     

  • Do I need to file Form 8971 if I transferred property after the death of the decedent?

    If you transfer property after the death of the decedent, you do not need to file Form 8971, but you must provide the heir(s) with information about the basis of the property.

    You can provide this information by sending the heir(s) a statement that includes the following information:

    1. The date of the decedent’s death.
    2. The fair market value of the property on the date of the decedent’s death.
    3. The basis of the property in the hands of the decedent on the date of the decedent’s death.
    4. The adjusted basis of the property in the hands of the executor on the date of the decedent’s death.
    5. The fair market value of the property on the date of the transfer.
    6. The basis of the property in the hands of the heir(s) on the date of the transfer.

    You must provide this statement to the heir(s) on or before the date that is 30 days after the date you transfer the property.

    If you do not provide this statement to the heir(s), you may have to pay a penalty of $250 for each person to whom you fail to provide the statement.

  • How do I determine the basis of property I inherited?

    The basis of the property you inherit is generally the fair market value of the property on the date of the decedent’s death.

    You may be able to increase the basis of the property you inherit by adding certain expenses, such as the cost of probate and estate administration, to the fair market value of the property.

    You can find more information about determining the basis of property you inherit in Publication 551, Basis of Assets.

Fillable online Form 8971
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