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The tax code of the ... receives a stepped-up basis, which is its market value at the ... the taxpayer after his death, then her stepped-up basis would be $100,000 ...
At the moment you inherit, the IRS will consider the house’s original cost basis stepped up to current market value. This means that if you sell it immediately, you will pay no capital gains taxes:
Under the stepped-up basis rule, [8] for an individual who inherits a capital asset, the cost basis is "stepped up" to its fair market value of the property at the time of the inheritance. When eventually sold, the capital gain or loss is only the difference in value from this stepped-up basis.
In this situation the asset's basis is its fair market value at the time of transfer. See Treas. Reg. § 1.1015-1(a)(1). Assets acquired by inheritance: Assets acquired by inheritance are eligible to receive stepped-up basis, meaning the fair market value of the asset at the time of the decedent's death. See IRC § 1014. This provision shields ...
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The U.S. has two kinds of so-called death taxes: the estate tax, which is levied by the federal government and certain states, and the inheritance tax, which is levied by a number of other states ...
The term "death tax" more directly refers back to the original use of "death duties" to address the fact that death itself triggers the tax or the transfer of assets on which the tax is assessed. While the use of terms like "death duty" had been known earlier, specifically calling estate tax the "death tax" was a move that entered mainstream ...
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