Treasury Regulations · 26 CFR
§ 1.1014-8. Bequest, devise, or inheritance of a remainder interest.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 1014
Cite as 26 CFR § 1.1014-8
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted.
- Issued under
- 26 U.S.C. § 1014
- Length
- 818 words · about 4 min to read
- Cross-references
- cites 0 Code sections and 1 regulation; cited by 1
Assume that, under the will of a decedent, property consisting of common stock with a value of $1,000 at the time of the decedent's death is transferred in trust, to pay the income to A for life, remainder to B or to B's estate. B predeceases A and bequeaths the remainder interest to C. Assume that B dies on January 1, 1956, and that the value of the stock originally transferred is $1,600 at B's death. A's age at that time is 37. The value of the remainder interest included in B's estate is $547 (0.34185, remainder factor age 37, × $1,600), and hence $547 is C's basis for the remainder interest immediately after B's death. Assume that C sells the remainder interest on January 1, 1961, when A's age is 42. C's basis for the remainder interest at the time of such sale is $596, computed as follows:
| Basis of remainder interest computed with respect to uniform basis of entire property (0.39131, remainder factor age 42, × $1,000, uniform basis of entire property) | $391 | |
| plus | ||
| Value of remainder interest included in B's estate | $547 | |
| less | ||
| Basis of remainder interest immediately prior to B's death (0.34185, remainder factor age 37, × $1,000) | 342 | |
| ___ | 205 | |
| Basis of C's remainder interest at the time of sale | 596 | |
Assume the same facts as in example (1), except that C does not sell the remainder interest. Upon A's death terminating the trust, C's basis for the stock distributed to him is computed as follows:
| Uniform basis of the property, adjusted to date of termination of the trust | $1,000 | |
| plus | ||
| Value of remainder interests in the property at the time of B's death | $547 | |
| less | ||
| B's share of uniform basis of the property at the time of his death | 342 | |
| ___ | 205 | |
| C's basis for the stock distributed to him upon the termination of the trust | 1,205 | |
Assume the same facts as in example (2), except that the property transferred is depreciable. Assume further that $100 of depreciation was allowed prior to B's death and that $50 of depreciation is allowed between the time of B's death and the termination of the trust. Upon A's death terminating the trust, C's basis for the property distributed to him is computed as follows:
| Uniform basis of the property, adjusted to date of termination of the trust: | ||
| Uniform basis immediately after decedent's death | $1,000 | |
| Depreciation allowed following decedent's death | 150 | |
| $350 | ||
| plus | ||
| Value of remainder interest in the property at the time of B's death | 547 | |
| less | ||
| B's share of uniform basis of the property at the time of his death (0.34185 × $900, uniform basis at B's death) | 308 | |
| ___ | 239 | |
| C's basis for the property distributed to him upon the termination of the trust | 1,089 | |
Cross-references
Computed from the citations in the text of 26 CFR.
Regulations it cites
Cited by 1 other regulation
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Basis Rules of General Application
Nearby sections
- § 1.1014-4 Uniformity of basis; adjustment to basis.
- § 1.1014-5 Gain or loss.
- § 1.1014-6 Special rule for adjustments to basis where property is acquired from a decedent prior to his death.
- § 1.1014-7 Example applying rules of §§ 1.1014-4 through 1.1014-6 to case involving multiple interests.
- § 1.1014-8 Bequest, devise, or inheritance of a remainder interest.
- § 1.1014-9 Special rule with respect to DISC stock.
- § 1.1014-10 Basis of property acquired from a decedent must be consistent with property's Federal estate tax value.
- § 1.1015-1 Basis of property acquired by gift after December 31, 1920.
- § 1.1015-2 Transfer of property in trust after December 31, 1920.