What is a Step-Up in Basis?
A step-up in basis may be one of an estate planner’s best tools. To truly understand how beneficial this tool is, it’s essential to first grasp the concept of basis. In simple terms, basis refers to what you initially paid for an asset. On the other hand, the amount realized refers to what you sell […]
Understanding the ‘Step-Up in Basis’ When Selling Inherited Assets
Inheriting an asset can be a mixed blessing. While it might signify a meaningful bequest from a loved one, it also comes with its own tax implications. One of the most significant tax features to understand when inheriting property is the “step-up in basis”. We often encounter clients who are unaware or confused about how […]