The so-called “step-up in basis” rule is a crucial aspect of U.S. tax law that can significantly affect the taxation of inherited assets. This provision, which is codified within the Internal Revenue ...

What if a husband and wife own a home together that increases in value by $500,000. When one spouse dies and the other owns the property themselves, do they receive a step-up in basis? Or do they only ...

Dear Liz: I own a house with my longtime boyfriend. If one of us dies, how does the capital gains step-up affect the other? Answer: The deceased partner’s share of the home will get a new basis for ...

The basis step-up rule effectively wipes out any built-in capital gain when someone inherits an asset from a decedent. Because the amount of capital gain determines the amount of capital gains tax ...

Forbes contributors publish independent expert analyses and insights. I write about charitable giving and estate planning ideas. Many taxpayers created irrevocable trusts and transferred significant ...

Do funds in a Roth IRA get the benefit of a stepped-up basis for my heirs when I die? No, the cost basis of the assets held within your IRA will not step up or reset to their current market value when ...

I noticed this tweet from a wealth adviser: “The greatest perpetuator of U.S. wealth inequality is the stepped-up basis rule. Basically, when you die, all the capital gains on your assets (home, ...

Stepped up basis can minimize the tax bill. Basis is a key concept to understand here. Let’s say you bought a bunch of stock for $100,000 and a few years later sold it for $250,000. To understand how ...