stepped-up basis

Definition of "stepped-up basis"
  1. A raised value of inherited property from its original cost to its market value upon the previous owner's death, reducing taxable capital gain when the property is sold
How to use "stepped-up basis" in a sentence
  1. After their father's death, the siblings benefited from the stepped-up basis of the family home when they sold it.
  2. By using the stepped-up basis, the taxable gain was considerably less when he sold his inherited shares.
  3. The stepped-up basis of the property greatly reduced the capital gains tax payable when she sold the apartment left her by her grandmother.

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