What is one of the two requirements to utilize the Alternate Valuation Date?

The correct requirement to utilize the Alternate Valuation Date is that it must reduce the estate tax liability. The Alternate Valuation Date allows an estate to value its assets at a date six months after the date of death instead of the date of death itself. This may be beneficial if the value of the estate has decreased in that time frame, thus potentially lowering the estate tax owed.

Utilizing the Alternate Valuation Date is specifically designed as a tax-planning tool to help decrease the overall tax burden of the estate. If using the Alternate Valuation Date does not result in a reduction of the estate’s value and, consequently, estate tax liability, then it cannot be used.

The other options do not align with the criteria set by the IRS for this provision. For instance, the requirement that the date must be at least one year after the decedent's death is incorrect; it is strictly a six-month period. Jointly owned property or business property specifications also do not constitute eligibility for using the Alternate Valuation Date, as the criteria are not restricted to specific types of property but are instead focused solely on the outcome related to tax liability.