When you inherit an asset because someone died, your basis becomes the fair market value as of the person's death. This refers to which of the following?

Question

Quizplus · Accepted Answer

The term "stepped-up basis" refers to the adjustment of the value of an inherited asset for tax purposes upon the owner's death. The basis of the asset is "stepped up" to its fair market value at the time of the owner's death, potentially reducing the capital gains tax owed if the asset is later sold by the inheritor.

When You Inherit an Asset Because Someone Died, Your Basis