If a binding contract for the sale, exchange, or other disposition of property is entered into, the property is considered as sold, exchanged, or otherwise disposed of on the effective date of the contract, unless the contract is not subsequently carried out substantially in accordance with its terms. The effective date of a contract is normally the date it is entered into (and not the date it is consummated, or the date legal title to the property passes) unless the contract specifies a different effective date.
Description | Subsequent valuation date | Alternate value | Value at date of death |
Bond, par value $1,000, bearing interest at 4 percent payable quarterly on Feb. 1, May 1, Aug. 1, and Nov. 1. Bond distributed to legatee on Mar. 1, 1955 | Mar. 1, 1955 | $1,000.00 | $1,000.00 |
Interest coupon of $10 attached to bond and not cashed at date of death although due and payable Nov. 1, 1954. Cashed by executor on Feb. 1, 1955 | Feb. 1, 1955 | 10.00 | 10.00 |
Interest accrued from Nov. 1, 1954, to Jan. 1, 1955, collected on Feb. 1, 1955 | Feb. 1, 1955 | 6.67 | 6.67 |
Real estate, not disposed of within year following death. Rent of $300 due at the end of each quarter, Feb. 1, May 1, Aug. 1, and Nov. 1 | Jan. 1, 1956 | 11,000.00 | 12,000.00 |
Rent due for quarter ending Nov. 1, 1954, but not collected until Feb. 1, 1955 | Feb. 1, 1955 | 300.00 | 300.00 |
Rent accrued for November and December 1954, collected on Feb. 1, 1955 | Feb. 1, 1955 | 200.00 | 200.00 |
Common stock, X Corporation, 500 shares, not disposed of within year following decedent's death | Jan. 1, 1956 | 47,500.00 | 50,000.00 |
Dividend of $2 per share declared Dec. 10, 1954, and paid on Jan. 10, 1955, to holders of record on Dec. 30, 1954 | Jan. 10, 1955 | 1,000.00 | 1,000.00 |
Table 2 to Paragraph (f)(1)(ii)
Table S-Based on Table 2010CM
Age | Annuity | Life estate | Remainder |
Interest at 4.2 Percent | |||
65 | 12.2128 | 0.51294 | 0.48706 |
Interest at 4.6 Percent | |||
65 | 11.7691 | 0.54138 | 0.45862 |
26 C.F.R. §20.2032-1