Briefly Noted

Step-Up Value and Inherited Assets

In last month’s Briefly Noted discussion about the lack of an estate tax, we made an error in discussing the tax basis for selling inherited assets [“The Lack of an Estate Tax,” April 2010 AAII Journal]. Specifically, we said that “inherited property is not ‘stepped-up.’” That was not completely correct.

If property is inherited in 2010 and subsequently sold, the tax basis for calculating any gain is based on two numbers. The first is the price paid by the deceased. The second is a step-up value of $1.3 million. (Surviving spouses are eligible for an additional $3 million, bringing the total step-up value to $4.3 million.)

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future articles.


No comments have been added yet. Add your thoughts to the discussion!

You need to log in as a registered AAII user before commenting.
Create an account

Log In