Navigation
Blog Index

FREQUENTLY ASKED QUESTIONS > GLOSSARY OF TERMS > STEPPED-UP BASIS

Search the FAQ for entries containing:

Assets which are transferred by inheritance after the death of their owner, whether through a Will or through a Trust are revalued to their current fair market value as of the owner’s day of death.

If an asset has increased in value over what the owner paid for it (or the basis at which he received it) the new basis is called a step-up basis.

Capital gains tax is paid upon the difference between the price the asset is sold and the basis at which it was acquired.