What is the property step up basis?

[LinaJ2018 · Accepted solution]

Step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance.  It is determined to be the higher market value of the asset at the time of inheritance. When an asset is passed on to a beneficiary, its value is typically more than what it was when the original owner acquired it. The asset receives a step-up in basis so that the beneficiary's capital gain tax is minimized.