Appreciated property that was inherited in 2018

Question

Quizplus · Accepted Answer

Property that is inherited in 2018 has a stepped-up basis (a), which means that the cost basis for the beneficiary is the fair market value at the date of the decedent's death. This also means that the beneficiary does not have to pay income tax on the appreciation that occurred prior to the date of the decedent's death (b). Additionally, the beneficiary will not have to pay income tax on any post-inheritance appreciation if they decide to sell the property in the future (c).

Appreciated Property That Was Inherited in 2018