Stepping Up The Basis of Your Property Acquired From A Decedent or Death of a Spouse

If your spouse passes away or you inherit a property, it is important to consult with a CPA or tax advisor to determine the capital tax guidelines with regards to resetting the property “basis.” As the #1 Area Realtor, I have helped many families through the process of inherited property basis. Here’s a little more about how I can assist:

What is Inherited Property Basis Step-up?

Simply put, the cost basis of a property is based upon the initial purchase price, and other various factors such as purchasing costs, capital improvements, etc.   When property is sold, the taxpayer pays taxes on a capital gain that equals the amount of the sale minus the property’s cost basis.

Inherited property basis is nothing more than the cost basis of property inherited from a decedent. But, property attained through inheritance after the death of a spouse is eligible to be “stepped-up,” or have the value reassessed.

The value will change to the Fair Market Value at the time of the decedent’s death. In other words, inherited property gets reviewed and the basis gets altered to the current market value of the time the spouse passes.

Property acquired from the decedent can include the following:

  1. Property acquired by inheritance, or by the decedent’s estate
  2. Property transferred by the decedent during the decedent’s lifetime
  3. Any property passing from the decedent by reason of death to the extent that such property passed without consideration

The benefit of inherited property basis step-up is you could potentially save money on capital gains tax. This saved money will go a long way in helping you get through your tough family situation.

How I Can Help You

Once I take a look at the property and determine a range of current fair market value,  I will write the letter for basis reassessment on inherited property in order to help save you money on capital gains tax and have your property basis “stepped-up.”

If your spouse has passed away or your have inherited a property you need assistance with basis step up or a market evaluation for a potential sale, give me a call.  I can help you with a FREE, no obligation evaluation, consultation or letter for basis reassessment.  Call 760-310-0234


By Linda Moore


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