Personal Finance
What is a step-up in basis?
Quick Answer
Step-up in basis resets the cost basis of an inherited asset to its fair market value on the date of death. The heir owes no capital gains tax on appreciation during the deceased's lifetime — saving up to 23.8% federal tax on highly appreciated assets.
Warren Team
Updated April 26, 2026
37
Warren Team
Updated April 26, 2026
37
Important Disclaimer:
The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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