stepped-up basis

stepped-up basis
An increased basis (value that is used to determine taxable profit or loss when property is sold) given to inherited property that went up in value after the deceased person acquired it but before the new owner inherited it. The basis of the new owner is "stepped up" to the market value of the property at the time of death. The stepped-up basis means that when the property is eventually sold, there will be less taxable capital gain.
Category: Real Estate & Rental Property → Selling a House

Nolo’s Plain-English Law Dictionary. . 2009.

stepped-up basis
USA
stepped-up basis, Also known as step-up in basis.
basis that is higher than the transferor's basis. For example, a buyer often receives a stepped-up basis in assets acquired in a transaction structured as an asset acquisition and a transferee often receives a stepped-up basis in property received from a decedent under the IRC § 1014(a).
However, if the transferor's or decedent's basis in the property exceeds the fair market value of the property, there will be a "step-down" in basis.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Stepped-up basis — basis is the term used to describe the basis of property that a taxpayer receives from a decedent under the Internal Revenue Code § 1014(a). General rule Under IRC § 1014(a) the general rule applied to property a beneficiary receives from a… …   Wikipedia

  • stepped–up basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • basis — ba·sis / bā səs/ n pl ba·ses / ˌsēz/ 1: something (as a principle or reason) on which something else is established the court could not imagine any conceivable basis for the statute see also rational basis 2: a basic principle o …   Law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • basis, stepped-up — n. A basis that is increased to a certain level at a particular date, usually in property transferred through inheritance. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • step-up in basis — USA stepped up basis, Also known as step up in basis. basis that is higher than the transferor s basis. For example, a buyer often receives a stepped up basis in assets acquired in a transaction structured as an asset acquisition and a transferee …   Law dictionary

  • Cost basis — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • adjusted basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. adjusted basis n …   Law dictionary

  • carryover basis — see basis 3 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. carryover basis …   Law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”