Step up Basis
When a client inherits assets that are stepped up in basis, do the existing acquisition dates stay in place or is the date they inherited the positions and got the step up considered the new acquisition date?
When a client inherits assets that are stepped up in basis, do the existing acquisition dates stay in place or is the date they inherited the positions and got the step up considered the new acquisition date?
Permalink Submitted by Alan - IRA critic on Fri, 2019-03-29 16:11
Inherited assets that receive a basis adjustment (up or down) are treated as being held long term. As such the acquisition date does not matter. Form 8949 instructions where sales are reported should not show a date as the acquisition date, rather “inherited” should be entered as the acquisition date.