Stepped-Up Basis

Type: Concept

As of November 2026, Stepped-Up Basis has been mentioned in one podcast episode on The Ramsey Show (Nov 2026). Discussed briefly in the context of transferring property and tax basis implications if property is transferred during life vs. at death.

The tax code of the United States holds that when a person receives an asset from a giver after the benefactor dies, the asset receives a stepped-up basis, which is its market value at the time the benefactor dies. A stepped-up basis can be higher than the before-death cost basis, which is the benefactor's purchase price for the asset, adjusted for improvements or losses. Because taxable capital-gain income is the selling price minus the basis, a high stepped-up basis can greatly reduce the bene