US 2028 Step-Up Basis

Step-up basis 2028: inherited asset basis = FMV at death. Eliminates decedent's accumulated capital gains. Powerful estate planning — hold appreciated assets to death.

Original basis (decedent) ($)

FMV at death ($)

Heir cap gains bracket %

Tax Saved

—

Eliminated Gain

—

Original basis	—
FMV at death (new basis)	—
Eliminated gain	—
2028 tax saved	—

Step-up basis (IRC §1014) 2028: inherited assets receive new basis = fair market value at decedent's date of death (or 6-month alternate). Wipes out all capital gains accumulated during decedent's lifetime. Single most powerful estate planning rule. Hold highly appreciated assets to death rather than sell during life — heirs receive tax-free basis step.

h2

body_html

h2

body_html

h2

body_html

Last updated May 2026. Sources: IRS Sec 1014.