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  3. jim inherits stock (a capital asset) from his b

Jim inherits stock (a capital asset) from his brother, who died in...

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Accounting

Jim inherits stock (a capital asset) from his
brother, who died in March 2023, when the property had a $20.7 million FMV. This property is
the only property included in his brothers gross
estate and there is a taxable estate. The FMV of
the property as of the alternate valuation date
was $20.3 million.
a. Why might the executor of the brothers estate elect to use the alternate valuation date to
value the property?
b. Why might Jim prefer the executor to use FMV
at time of the death to value the property?
c. If the marginal estate tax rate is 40% and Jims
marginal income tax rate is 24% and his rate
on ANCG is 15%, which value should the executor use?

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