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Get your taxes done using TurboTax
@wjwittenberg wrote:
.....Can the inheritor include these costs in their cost basis.
No. Per Section 1014, the basis is generally the fair market value on the date of death of the decedent for property acquired from a decedent.
See https://www.law.cornell.edu/uscode/text/26/1014
There are instances where the fair market value of the property on the date of death is actually less than what the decedent paid for the property. However, it makes no difference as the property is stepped-up (or stepped-down) to its fair market value on the date of death.
March 20, 2023
11:04 AM