Inheriting previously inherited assets, do they get stepped up twice?

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letsgobobby
Posts: 11878
Joined: Fri Sep 18, 2009 1:10 am

Inheriting previously inherited assets, do they get stepped up twice?

Post by letsgobobby » Sat Jan 12, 2019 9:26 pm

I inherit some shares from my dad when he passes. I never sell them. Then when I die, they are left to my child. What is her basis?

Does this process continue indefinitely?

ionball
Posts: 145
Joined: Wed Jan 31, 2018 12:17 pm

Re: Inheriting previously inherited assets, do they get stepped up twice?

Post by ionball » Sat Jan 12, 2019 9:34 pm

I believe her cost basis will be the price on your date of death.

increment
Posts: 35
Joined: Tue May 15, 2018 2:20 pm

Re: Inheriting previously inherited assets, do they get stepped up twice?

Post by increment » Sat Jan 12, 2019 9:39 pm

letsgobobby wrote:
Sat Jan 12, 2019 9:26 pm
Does this process continue indefinitely?
Yes, until the government changes the law (as is proposed from time to time, usually in conjunction with changes to the often-vilified federal estate tax).

Silk McCue
Posts: 1776
Joined: Thu Feb 25, 2016 7:11 pm

Re: Inheriting previously inherited assets, do they get stepped up twice?

Post by Silk McCue » Sat Jan 12, 2019 9:39 pm

Forever becomes an issue at some point. Check out this article.

https://www.thebalance.com/how-the-step ... rks-357485

Cheers

Nutmeg
Posts: 123
Joined: Wed Jul 26, 2017 12:52 pm

Re: Inheriting previously inherited assets, do they get stepped up twice?

Post by Nutmeg » Sat Jan 12, 2019 11:50 pm

Note that technically basis in inherited property is not stepped up at the date of death, but rather marked to market. Therefore, if the property has lost value, its basis is stepped down.

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