What form is used for making an Election for Alternative Valuation Date?

The correct form used for making an Election for Alternative Valuation Date is Form 706. This form is specifically utilized to report estate taxes and to make certain elections related to estate tax calculations, including the election for an alternative valuation date.

When an estate is subject to federal estate tax, the executor has the option to elect an alternative valuation date, which can potentially lower the overall estate tax liability if the value of the assets has decreased since the date of death. This alternative valuation date is typically six months after the date of death and can be chosen if it benefits the estate tax calculations.

Using Form 706 is critical in these situations, as it allows for the proper reporting of the estate's value and the determination of the estate tax owed based on the selected valuation date. This form plays a central role in the estate planning and tax compliance process for estates that exceed the estate tax exemption limit.