Broker Check

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

| March 06, 2019
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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

This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.

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