How a Step-Up in Basis Can Be a Tax Dream – Part 1

This excerpt from the Skloff Financial Group website explains the concept of a "step-up in basis" which can significantly reduce capital gains taxes. Essentially, when someone inherits an asset, the cost basis of that asset is "stepped up" to its fair market value at the time of the person's death. This means that if an asset has appreciated in value, the inheritor won't have to pay taxes on the gains accrued before the decedent's passing. The author provides examples of assets that qualify for a step-up in basis, such as stocks, bonds, real estate, and personal property, as well as assets that do not, such as retirement accounts and cash. The article emphasizes that this can be a significant tax benefit for inheritors, allowing them to potentially avoid paying significant taxes on appreciated assets.

Article Link:
https://skloff.com/how-a-step-up-in-basis-can-be-a-tax-dream-part-1-080124/

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