Step-Up in Basis
TaxesThe adjustment of an inherited asset's cost basis to its fair market value at the date of death, eliminating unrealized capital gains.
Example
Example: On a $75,000 salary, understanding step-up in basis could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how step-up in basis works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.