Do you have to be related in order to qualify for the basis Step up on inherited property?

Forum|Forum|1 year ago
February 15, 2025
2 replies
19 views

Taxpayer has inherited property from a friend's estate and wants to take advantage of the step up in basis. I need to know if this is available because she is not related to the estate.

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Best answer by Terry53029

Don't have to be related. this is what the IRS says.

The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

IRonMaN

Level 15

You don't have to be at least a 5th cousin to get the step up. If it was inherited, they get the step up.

Slava Ukraini!

T

Terry53029

Answer

Intuit Community Champion

Don't have to be related. this is what the IRS says.

The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

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