DEAR BOB: I read your recent item about property "stepped-up basis" with great interest, but I wish you had taken it further. Suppose an owner deeds you a house purchased for $100,000, which is now worth $300,000, and you live in it the rest of your life. Won't you be paying taxes on $100,000 and be way ahead of the game? --Martin A. DEAR MARTIN: You seem to be confusing apples with oranges. "Stepped-up basis" to market value refers only to the adjusted-cost basis for inherited property. In other words, the owner died and you inherited the property. Stepped-up basis is very important when the heir decides to sell the inherited property. Purchase Bob Bruss reports online. For example, if your basis for a property is $100,000, but it is worth $300,000 on the date of your death, your heir's ...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.