Step Up In Basis

Forum|Forum|2 years ago
January 24, 2024
2 replies
0 views

Election to step up in basis can occur at date of death or six months after date of death. Can it be elected at any date between date of date and six months later?

KrisD15

Only if it is sold within that 6 months.

Sec 2032

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Carl11_2

Employee

Step-up in basis is based on the FMV on the date of the original owner's passing.You can't change that date to a later date, unless the property is sold within 6 months of the original owner's date of passing. (Not the date you received the inheritance)

Anonymous_

Employee

@LW3419

Whenever you hear or see "6 months" with respect to your issue, you should note that the 6-month time period applies to estate tax, not estate income tax.

Further, the 6-month alternate valuation date election cannot be made unless that valuation would reduce both the size of the gross estate and the amount of estate tax due.

See Section 2032(c) https://www.law.cornell.edu/uscode/text/26/2032

Effectively, unless the estate is worth over $13,000,000 (for 2024), the alternate valuation date election cannot be made and the basis is the fair market value on the date of death.