Step Up In Basis Definition Death Of Spouse Tax Calculations
What is Step-Up in Basis? The rule implies that the cost basis of an asset when it is with the heir will be different from the cost basis calculated for the benefactor. The provision’s significance arises when an heir deals with activities like selling inherited assets. To calculate the capital gain tax liability, they have to calculate the inherited asset’s basis differently. Key Takeaways Step-up in basis refers to an IRS tax rule that allows updating the cost basis of an inherited asset to its fair market value on the date of the decedent’s death....