Carryover Basis Act of 1991

Carryover Basis Act of 1991 - Amends the Internal Revenue Code (relating to the gain or loss on disposition of property) to provide for determining the carryover basis for property acquired from a decedent dying after December 31, 1991, and valued at $600,000 or more. Describes carryover basis property as that which is acquired from or passed from a decedent who died after December 31, 1991, and which is not excluded under this Act.

Permits the limited recognition of gain when the executor of an estate uses certain appreciated carryover basis property to satisfy the right of a person to receive a pecuniary bequest.

Establishes a procedure for the binding determination of the initial basis of carryover basis property.

Requires estate executors to: (1) file information returns in connection with carryover basis property; and (2) provide written notice to recipients of such property. Prescribes penalties for failure to report.