Step basis on inherited property

I hope this is a quick question. This is for a Trust. I'm the trustee.

My sister died 12/28/23

Her condo was sold 12/10/24. Let's say for $500k

The fair market value stayed about the same from time of death until the property was sold. What do i enter on the form for the stepped up basis? I have been given 2 different answer for the same question.

Do i enter $0 on the form, or $500k on the form?

3784

Level 15

Sep 20, 2025 7:26:30 PM

Sorry for your loss. Unless you had an interest in the property that preceded her death, you use $500K as the basis. In all probability there will actually be a loss after selling expenses are taken into account.

Level 15

Sep 21, 2025 7:46:22 AM

@ScottAHermann wrote:
The fair market value stayed about the same from time of death until the property was sold.

Although I agree with @Mike9241, you should have some documentation supporting this statement for the tax records since it was almost a year between the date of death and the sale of the property.

Sorry for your loss,

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Step basis on inherited property