When you inherit property from a decedent, you may get a stepped up basis, which means rather than taking the carry-over basis from the decedent, your basis can be stepped up to the fair market value at the time you received that property from the decedent. Section 1014 gives you that stepped up basis. If you sell the property shortly after acquiring it from the decedent, you may not have much gain because your basis was stepped up. We don’t know what the state pegged the value at for estate tax purposes so you need to check with your accountant and perhaps the estate attorney that settled the account of the decedent to see what they pegged the value at for your step up in basis. If you sell it for more than what they pegged it, for estate tax purposes then you may have a gain. You may not have to do a 1031 exchange if you have little or no gain because of the step up in basis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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