Heir Basis Consistency
Compare estate-reported and heir-claimed basis within a supplied tolerance.
Description
Inherited-basis consistency compares a claimed amount with an estate value within a chosen tolerance.
Inherited-basis consistency compares a claimed amount with an estate value within a chosen tolerance. A numeric match does not establish which basis rule applies.1
Compare estate-reported and heir-claimed basis within a supplied tolerance.
When to use Heir Basis Consistency
Use this tool to compare estate-reported and heir-claimed basis within a supplied tolerance.
Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
How to use Heir Basis Consistency and understand its results
- Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
- Enter estateReportedBasis, heirClaimedBasis, toleranceAmount using the field table and calculation rules, then run the tool.
- Read basisDifference, absoluteDifference, withinTolerance. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| estateReportedBasis | Estate-reported basis | number; minimum: 0 | Required |
| heirClaimedBasis | Heir-claimed basis | number; minimum: 0 | Required |
| toleranceAmount | Allowed difference | number; minimum: 0 | Required |
Enter nonnegative claimed basis, estate value and absolute tolerance. Return signed difference and inclusive consistency flag.
difference=claimedBasis−estateValue; consistent=|difference|≤tolerance Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| basisDifference | Claimed minus reported basis | number |
| absoluteDifference | Absolute basis difference | number; minimum: 0 |
| withinTolerance | Within supplied tolerance | boolean |
{
"input": {
"estateReportedBasis": 100,
"heirClaimedBasis": 105,
"toleranceAmount": 10
},
"output": {
"basisDifference": 5,
"absoluteDifference": 5,
"withinTolerance": true
}
}Limitations and assumptions
No estate filing, valuation date, alternate valuation election or basis adjustment is checked.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Hard-Fork Basis Split: Allocate original basis between hard-fork assets by supplied fair values. For a complementary task, use Estate Liquidity Gap: Compare liquid estate assets with caller-supplied tax and near-term obligations.
References
-
Heir Basis Consistency — tool.io
Similar or alternative tools
- Hard-Fork Basis Split
Allocate original basis between hard-fork assets by supplied fair values.
- Estate Liquidity Gap
Compare liquid estate assets with caller-supplied tax and near-term obligations.