Inherited about $1 million worth of property
I inherited about $1 million worth of real property in 2010. The deceased's cost basis was approximately $200k. I know there was no estate tax in 2010 and I live in Connecticut, where I think the threshold for taxes on estates/inheritances is $2 million, so nothing there. My concern is capital gains, but I did read about a Tax Relief act that was passed at the end of 2010 and included something for estates where $1.3 million of basis can be added. 1) Is this correct? 2) Do I need to fill out some special forms to "take" the basis increase?. the estate is still open for other reasons and I am the executor and sole beneficiary and haven't taken title of the property yet.