Step-up basis
Inherited property gets a basis equal to fair market value on the date of death. If you later sell, gain is calculated from that stepped-up basis, not the decedent's original cost.
Inherited IRAs
Post-SECURE Act (2020+), non-spouse beneficiaries must empty inherited traditional IRAs within 10 years. Spouses can roll to their own IRA. Planning the distribution pattern across the 10 years saves significant tax.
Common questions
- Is my inheritance taxable?
- Usually no. Federal inheritance isn't taxed to the recipient. Income earned after inheritance (interest, dividends, rent) is taxable to you going forward.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. Serving individuals in Florida and all 50 states.
Estate & Trust Tax Returns
Form 1041 preparation for estates and trusts. We work with executors, trustees, and beneficiaries to file accurately and on time.
Tax Planning
Year-round tax planning for individuals and business owners. We model decisions before they become tax liabilities.