Under section 1014 of the Internal Revenue Code, when you inherit property from someone upon their death, you don’t take the low basis that they carried with them throughout their lifetime. Instead, your basis is stepped up to the fair market value of the property at the time of the decedent’s death. When the decedent dies there is probably a property valuation conducted for estate tax purposes. Whatever that value is, that’s likely the value you receive as your basis going forward. That’s a really good deal if you inherit property because you can potentially sell it the day after the funeral and not have any gain because your basis has been stepped up.
Twin Cities 1031 Exchange Services
CPEC1031, LLC offers 1031 exchange services to the Twin Cities area, as well as greater Minnesota and the entire United States. We provide qualified intermediary services to taxpayers conducting forward exchanges, reverse exchanges, construction exchanges, and more. No matter what type of exchange you are interested in, we have the skills and experience to guide you through the exchange process. Contact us to talk about the specifics of your next 1031 exchange and see how we can help you defer taxes on the sale of qualifying real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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