Basis of Inherited Property – Paul Gaulkin CPA

Basis of an inherited capital asset is generally going to be the fair market value of the property on the date of death or alternative valuation date, if elected by the personal representative. With the exception of 2010 transfers electing modified carryover basis, a gain on inherited property is always long term. Step Up Basis A step up in basis occurs when the fair market value is greater than the decedent’s basis. It is important however to understand that the … Read more