Blog
July 20, 2021
2021 – 07/20 – There’s currently a “stepped-up basis” if you inherit property — but will it last?
Wolff and Taylor
July 20, 2021
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Individual Income Tax
20 Jul
If you’re planning your estate, or you’ve inherited assets, you may not know the “basis” for tax purposes. Under the current rules (known as the “step-up” rules), an heir receives a basis in inherited property equal to its date-of-death value. For example, if your grandmother paid $500 for stock in 1935 and it’s worth $1 million at her death, the basis is stepped up to $1 million for your grandmother’s heirs, and that gain escapes federal income tax. Be aware that President Biden has proposed ending the ability to step-up the basis for gains exceeding $1 million (with exemptions for farms and family businesses).
