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

Categories: Estate Planning, Taxation

In most cases, there is at least some kind of step-up in basis when property is inherited. But there are a few exceptions and some subtle distinctions that do occur.

To help make the conversation easier, we have created the “Will I Receive A Step-Up In Basis For This Inherited 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 inherited.  This flowchart considers:

  • Impact of living in a community property state
  • Types of property that receive a step-up
  • Impact of selecting the alternative valuation date
  • Simple Ownership vs. JTWROS vs Tenants in Common

Updated for 2018