Step-Up In Basis as a Tax Loophole. The step-up in basis is viewed as a tax loophole for many. While the intention is to help regular folks who owned assets for decades pass those assets on to ...

The step-up in basis rule is one of the biggest tax breaks in the Internal Revenue Code. With a cost of more than $60 billion per year, it warrants at least as much scrutiny as direct government ...

Step-up in basis, also known as stepped-up basis, is a wrinkle in the federal tax code that can help heirs avoid or reduce taxes on inherited assets. Inherited assets don’t have to incur added fees.

A step-up in basis adjusts the original cost basis to the asset’s fair market value (FMV) at the time of the original owner’s death, which can result in major tax savings if you’re the heir.

Inherited assets don’t have to incur added fees. Step-up in basis, also known as stepped-up basis, is a wrinkle in the federal tax code that can help heirs avoid or reduce taxes on inherited assets.

Section 2032A allows the estate to pay less estate tax but will force heirs to pay more capital gains tax in the future. It effectively eliminates step-up in basis on inherited farmland if used.

The step-up in basis at death usually reduces the heir's tax burden when they sell the asset. The higher cost basis means less gain, which means less of a tax impact. Step-Up in Basis for Joint ...

The first spouse dies and the surviving spouse's tax basis is stepped up to $500,000. The surviving spouse can then sell the home for up to $750,000 without recognizing a taxable gain because of ...