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Unlocking the Stepped-Up Basis Advantage: Your Guide to Inherited Property

Posted by Nicole on September 6, 2023

Today, we shed light on the invaluable Stepped-Up Basis process, ensuring you make informed decisions during these significant life transitions.

What is the Stepped-Up Basis?

When a family member passes away and leaves you property, whether it’s a cherished family home or a valuable investment, you might be wondering about the tax implications. Here’s where the Stepped-Up Basis comes into play. Instead of inheriting the property at its original purchase price, you receive it at its current fair market value. This step-up in basis can lead to substantial tax benefits, should you decide to sell the property in the future.

The Advantages in a Nutshell:

  • Reduced Capital Gains Tax: If you decide to sell the inherited property, you’ll only pay capital gains tax on the appreciation that occurred after you inherited it, not the entire appreciation from the original purchase. This can translate into significant tax savings.
  • Maximize Wealth: By taking advantage of the Stepped-Up Basis, you have the opportunity to hold onto more of your property’s value when selling. This can be particularly advantageous if you plan to use the proceeds for other investments or to maintain your financial well-being.
  • Estate Planning Benefits: When you pass on the inherited property to your heirs, they’ll also benefit from a stepped-up basis. This creates a cycle of potential tax savings for generations to come.

How We Help:

  • Property Value Evaluation: We offer a free market evaluation on your property considering the condition and market trends. We will provide you with a Stepped Up Basis letter for your tax accountant. 
  • Tailored Guidance: We can connect you with a tax professional to explore personalized tax strategies and benefits.
  • Effective Selling: If you decide to sell, we’ll leverage our expertise to position your property effectively in the market, ensuring you reap the rewards of the Stepped-Up Basis. Ask us about our comprehensive marketing plan! 

For a confidential discussion about the Stepped-Up Basis process and how it applies to your inherited property, contact us at 310-936-1979.

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