Step-Up Basis Calculator

How the estimate works

• The basis of inherited property is generally its fair market value on the date of the owner's death, whether or not the estate files an estate tax return.Source: Internal Revenue Service, Gifts & inheritances (frequently asked questions)
• Improvements raise the basis: the IRS counts the cost of any improvements that have a useful life of more than one year.Source: Internal Revenue Service, Publication 551, Basis of Assets
• Deductions taken for depreciation or casualty losses lower the basis. This estimate does not include them.Source: Internal Revenue Service, Publication 551, Basis of Assets
• Selling costs are the costs directly connected with the sale, such as a real estate agent's commission, advertising fees and legal fees. The amount realized is the sale price minus those costs, and the gain or loss is the amount realized minus the basis.Source: Internal Revenue Service, Publication 523, Selling Your Home
• A gain is an amount realized that is more than the adjusted basis; a loss is an adjusted basis that is more than the amount realized.Source: Internal Revenue Service, Publication 544, Sales and Other Dispositions of Assets
• Community property: California is a community property state. When a spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property, as long as at least half of its value is included in the deceased spouse's gross estate.Source: Internal Revenue Service, Publication 551, Basis of Assets
• Other values can apply: the value on an alternate valuation date, when the estate's personal representative chooses alternate valuation; a value the executor reports to you for federal estate tax purposes, which some beneficiaries are required to use; and a different rule for property that you or your spouse gave to the owner within a year before the death.Source: Internal Revenue Service, Publication 551, Basis of Assets
• The IRS's guide for survivors and executors gives the same starting point: the fair market value of the property on the date of death.Source: Internal Revenue Service, Publication 559, Survivors, Executors, and Administrators
• The IRS says that if you sell inherited property for more than your basis, you have a taxable gain. This calculator does not work out any tax.Source: Internal Revenue Service, Gifts & inheritances (frequently asked questions)

Estimates are for informational purposes only and do not constitute a tax calculation or tax advice. Actual basis and gain depend on the property's value, your records and the rules that apply to you. Silver Lining Estate does not give legal, tax or financial advice.