Step-Up In Basis Rules For Appreciated Property – Will I Receive A Step-Up In Basis For The Appreciated Property I Inherited?

2026 · WILL I RECEIVE A STEP-UP IN BASIS
FOR THE APPRECIATED PROPERTY I INHERITED?
Both halves receive a step-up in basis to FMV if at least half is included in your spouse’s gross estate.Did you or your spouse gift the property you inherited to the decedent within one year before their death?Did you inherit the property from your spouse?YesNoNoYesSorry, there is no step-up in basis for the inherited property. You will receive the decedent’s adjusted basis.The property receives a step-up in basis to FMV based on the date selected earlier. Half the value receives a step-up in basis to FMV based on the date selected earlier. Full ownership passes to you.100% of the decedent's share receives a step-up in basis to FMV based on the date selected earlier. Ownership must be supported.Do you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin)?Was the alternate valuation date selected?Was the property sold before the alternate valuation date?Your cost basis is based on the FMV at the date of death.Your cost basis is based on the alternate valuation date (6 months after the date of death).Your cost basis is based on the value on the date it was sold.Is the property an IRA, 401(k), pension, annuity, or irrevocable trust?Is the property an IRA, 401(k), pension, annuity, or irrevocable trust?YesNoNoYesNoSorry, there is no step-up in basis for the inherited property.How was the property titled?Decedent sole ownerJTWROSTenants in CommonYesYesNoNoYesSTART HERE
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Birch Street Financial Advisors is an Investment Advisor registered with the State(s) of  Virginia.  All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions.  Please contact us at 703-319-8778 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. 
Joanne Burke, CFP®, CPA/PFS
705 Birch ST SW Vienna, VA 22180-6308
Joanne@Birchstreetadvisors.com | 703-319-8778 | www.Birchstreetadvisors.com