TomD8
Level 15

Deductions & credits

"Note that the life tenant must pass away with the property in the estate for the stepped-up basis to be applicable to the remainderman."

 

Correct.  Even with a life estate, there is no stepped-up basis if the property is sold or gifted prior to the life tenant's death.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.