step up in basis

Definition

The change in the value of an asset inherited upon the owner's death. The taxable gain is calculated based on the fair market value at the time of death, not the fair market value at the time the asset was purchased.

Use step up in basis in a sentence

You should try and make sure that you have the right person to step up in basis in case you happen to pass.

​ Was this Helpful? YES  NO 8 people found this helpful.

The step up in basis was something inherited upon the owners death and that was something we needed to pay attention to.

​ Was this Helpful? YES  NO 11 people found this helpful.

We were concerned that we would owe a large amount of inheritance tax upon my father's death, but we were relieved to learn that his gold coins would be priced at the time of his death thanks to the step up in basis principle.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
basis estate planning