CalculateRealEstateROI

Wealth Building

Step-Up in Basis

Adjustment of inherited asset's cost basis to fair market value at owner's death.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Wipes out depreciation recapture and capital gains for heirs. The 'forever' tax strategy.

Examples

  • Property worth $1M held at $200k basis → heirs inherit at $1M basis.

Common mistakes

  • Selling appreciated property right before death and losing step-up.

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