Bill > H2649

This bill aims to maintain the pre-2010 Massachusetts tax rules for determining the "basis" of property inherited from someone who has died, even though federal tax rules changed for 2010 and beyond. The "basis" of property is essentially its original cost, which is important for calculating capital gains or losses when that property is later sold. Specifically, for property inherited from decedents who died between December 31, 2009, and January 1, 2011, this bill ensures that the initial basis is calculated according to older federal tax codes (specifically, section 1014 of the Code, without considering certain later amendments like sections 1014(d) and (f)). However, it allows for an exception if the executor of the estate makes a specific election under a federal law called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312), in which case the basis would be determined under a different federal rule (section 1022 of the Code as it existed on January 1, 2005). The bill declares itself an emergency law to immediately implement these provisions for public convenience.