What Is My Basis For This Gifted Property I Received? – Will I Receive A Step-Up In Basis For This Gifted Property?

2026 · WHAT IS MY BASIS FOR THIS GIFTED PROPERTY I RECEIVED?
It is subject to the double basis rule. Your basis cannot be determined until the property is sold.Did you sell the property at a price greater than the donor’s adjusted basis?Did you sell the property at a price less than the fair market value at the time of the gift?You sold the property for a price between the donor’s adjusted basis and fair market value at the time of the gift.Sorry, there is no step-upin basis. The donor’s cost basis is carried over.Sorry, there is no step-up in basis. The donor’s cost basis is carried over.Sorry, there is no step-up in basis. The donor's cost basis is carried over.Your cost basis is increased by a portion of the federal gift tax paid based on the appreciation ratio (not to exceed the fair market value at the time of the gift).Sorry, there is no step-up in basis. The fair market value at the time of the gift is your basis.No gain or lossis recognized.Was federal gift tax paid by the donor?The donor’s cost basis is carried over but adjusted.NoYesYesNoNoYesYesNoNoYesIs the donor your spouse?Is the donor’s adjusted basis greater than the fair market value at the date of the gift?START HERE
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Aaron Vaughn
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