Download our Flowchart: Will I Receive A Step-Up In Basis For This Gifted Property?

In most cases, there is no step-up in basis when property is gifted. But there are a few exceptions to the general rule, which can be difficult to remember. To help make this analysis easier, we have created the “Will I Receive A Step-Up In Basis For This Gifted Property?” flowchart. It addresses some of the most common issues that arise for a client trying to understand their cost basis in property they received as a gift. This flowchart considers:

Double basis rule | Impact if gift tax was paid by the donor | Situations where cost basis carries over | Situations where there is a partial step-up in basis | Situations where no gain or loss is recognized