Will I Receive A Step-Up In Basis For This Gifted Property

Categories: Estate Planning, Taxation

In most cases, there is no step-up in basis when property is gifted. But there are a few exceptions and those exceptions can be difficult to remember.

To help make it easier, we have created the “Will I Receive A Step-Up In Basis For This Gifted Property?” flowchart. It addresses some of the most common issues that arise for a client trying to understand how their cost basis is impacted as a result of property they received as a gift. This flowchart considers:

  • Double Basis Rules
  • Impact if gift tax was paid by the donor
  • Situations where cost basis carries over
  • Situations where there is a partial step-up in basis
  • Situations where no gain or loss is recognized

Updated for 2019